How to Improve Your Credit Rating

We’re back with part two of the credit topic and this month we’re focusing on how to improve your credit rating. Last month we showed you how to check your credit report, so you should now know what your score is and whether you need to improve it or not.

Your credit rating affects your ability to borrow money, whether that’s for credit cards, loans or mortgages. If you need to improve your credit rating, read on to find out the benefits and tips on how to improve your score.

Why is it so important?

Your credit rating helps lenders decide whether to lend you money or not. It also helps them figure out how much you can borrow, and in some cases, the interest to charge you.

Having a good credit score will stand you in good stead to be approved for a loan as the lenders can see you are trustworthy and reliable.

What does it affect?

Your credit rating affects more than you think…

• Mortgages
• Loans
• Credit cards
• Energy bills
• Mobile phone contracts
• Car and home insurance
• …and much more

The benefits of improving

There are so many benefits for bettering your credit rating. Your score is fundamental when applying for any credit, whether that’s for a new sofa or TV!

A good credit rating can:

• Increase your chances of loan approval
• Provide low interest rates on credit cards and loans
• Allow you to borrow more money
• Give you more negotiating power
• Make applications and approvals easier and quicker!

How can you improve yours?

Whether your current rating isn’t too desirable, or you’d simply like to improve it, there are many steps you can take to get to the score you want and need!

These tips can help get you a rating that lenders won’t be able to turn down.

Short-term steps:

• Stop applying for credit
• Cancel any unused credit cards
• Get on the electoral register

Long-term steps:

• Pay bills and repayments on time
• Limit the number of credit applications you apply for
• Use a credit rebuild card to restore your history (e.g. Aqua)
• Avoid credit repair companies
• Check your credit reports regularly to avoid stress
• Don’t withdraw cash on credit cards
• Stay away from payday loans!
• Living with someone? Don’t let their score wreck yours

By improving your credit rating you’re setting yourself up for an easier, stress-free financial future. Take these tips on board and reap the benefits, trust us you’ll thank yourself later.

Bills, mortgages, rent, cars and loans are a part of life, so why not help yourself now to prevent credit rating stress later. By putting these guidelines into practice, you’ll sail through the process quickly and pain-free, if and when you decide to borrow.

Set up a free account with BeeMyMinder today to securely store your policies and set your renewal alerts, allowing you enough time to check and improve your credit score.

We hope you enjoyed this follow up to our ‘How To Check Your Credit Rating’ blog! If you missed the first part, feel free to check it out here!

Last updated by BeeMyMinder at December 2, 2015.