Ways of Improving your Credit Rating

Your credit score is definitely a important part in your life

, coming into affect if you make application for a loan, mortgage, credit card, or any other type of credit. Those you're wishing to borrow from, take a look at credit rating, in order to judge if they should lend to you, and at what rate.

If you have no idea what a credit rating is, a credit score is essentially a history which contains information on your borrowing in the past, together with any credit agreements, and how you've managed those repayments over the last 6 years.

If you've ever had your application for credit rejected, this may be because either your credit rating wasn't at a sufficient level, or because something in your credit history alarmed the lender.

For those who have a poor credit score, or in case you have a decent credit rating, there are many ways in which it is possible to improve it, and it is these methods to improve your credit score, which I'll be mentioning in this article.

Firstly, I really want you to take into consideration how you'd go about lending another individual money. Let's see things from the lenders view. I'm sure had you been going to lend a relative or friend money, you'd only do so under certain situations, you would not lend money to just anyone, as you'd more than likely never see it again. After we see things from this angle, we get a better concept of where lenders are coming from.

You need to be able to prove to these lenders that you're stable. The less you move home or change bank accounts, the better. Also adding a landline phone number on applications is viewed as greater than simply adding a mobile number, and if you're eligible to vote, ensure you add yourself to your local council's electoral roll.

In regards to payment, it's extremely important that you make any payments to credit card companies, loan providers or mortgage companies by the due date, as any missed or late payments appear on your credit history. The same pertains to household bills.

Lastly, don't make lots of applications for credit. The reason for this is that it leaves a footprint, in that a mark is left on your credit report each time a company has to access it. If too many of these footprints are left, alarm bells will ring for potential lenders. The easiest way around this would be to reduce how many credit applications you make, only making them when really required, and where there will be a good chance of you being accepted.

Ways of Improving your Credit Rating

By: Mick McCarthy

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