How can I improve my Credit rating?

With banks now having less money to lend than before, maintaining a good credit rating has never been as important. While we are all familiar with the basic issues of keeping up with payments and servicing our debts in a timely manner, there are other things you can do to ensure your credit rating stays as healthy as possible.

1. Make sure you are on the Electoral register: This shows stability and Lenders like stability. It's a simple one but we still get clients surprised when they learn this matters.
2. Try not to move house so often: As above, Lenders like stability and however valid the reasons for you moving home, they won;t like it if it happens too often.
3. Open a bank account: this provides proof of identity along with evidence of a financial record and perhaps even some savings or a regular income coming in
4. Have and use credit: If you've never borrowed before or ever even had an utility bills in your name, it is harder for a Lender to gauge your credit-worthiness. In this instance, many are likely to default to turning you down. For this reason, it is good to build a credit record as soon as you can. Have a utility bill or a mobile phone bill in your name; take an overdraft or a store card just so the Lenders are aware you are out there and can maintain payments. Needless to say though, don't borrow what you don't need and never borrow more than you can afford to repay.
5. Don't have unused credit: Signing up for store cards to avail of discounts (a practice that has now been outlawed) may have left you with many cards you don't use. Surprisingly, this may affect your credit score so close those accounts and stick to your main credit card.
6. Don't be late making payments: what you may thing as inconsequential forgetfulness can leave a nasty stain on your credit record. Where possible we recommend you pay as many bills with direct debit as possible to avoid forgetting.
7. Check your financial associations: your credit record can be adversely affected by the actions of a "financial association" i.e. someone with whom you have taken credit in the past e.g. a family member or partner.
8. Don't take cash out on your credit card: We've all done this once or twice in the past and doing so infrequently isn't a problem but if it becomes regular this can look a little like financial desperation so keep it to a minimum.
9. Don't apply for credit too frequently: we would suggest that more than 3 times in 6 months is too much. Again, it can look desperate
10. Check your credit report regularly: This is the most important point. To ensure that all your transactions are being correctly recorded and that no fraud is being carried out in your name, you should regularly check your credit report and right any errors tht may appear on it.

To check your credit report we suggest you use the 30 day free trial from Experian. For any further help with managing debts or to be put in touch with a qualified Debt Management consultant by calling us on 0845 1260350