Steps to improve your credit rating

Your credit profile and history is critical to getting any kind of loan. But the lending criterion varies massively between loan providers. Fortunately, this can be a good thing and you can help yourself to improve your chances of getting a loan. Just keep in mind that lenders are there to make money, so have a different mind-set to the loan you want which is to get some extra cash as cheaply as possible!

When you plan to apply for a loan you will need to do some preparation, which you can use to show a good credit history and sort through any issues that might affect your credit score adversely, especially when it’s something that is not correct or no longer true.

Below are a collection of useful articles and guides to help you do this:

Credit Rating How it works and how to improve it

Universal credit ratings don't exist. Each lender scores you based on its 'perfect customer' wish list. Contrary to popular belief, there's no such thing as a 'blacklist'.

This is a full guide to how banks assess you, boosting your ability to get mortgages, credit cards and more, plus a trick to instantly get your free credit report. Plus, if you struggle to get accepted, try getting a Credit Card for Bad Credit.

Read more at the MoneySavingExperts guide to credit rating.

Ten ways to improve your credit rating

Lenders are becoming more choosy about their customers, but cleaning up your credit history could boost your chances of obtaining credit

Strictly Come Dancing judges award 10 out of 10 - Ten ways to improve your credit status

Like the judges in the BBC's Strictly Come Dancing, lenders can be demanding - they may penalise those with imperfect credit histories Photo: BBC

Banks, building societies and credit card companies are becoming far more picky about who they will lend money to – they often offer their best deals only to those with a squeaky clean credit history.

Like the judges in the BBC's Strictly Come Dancing, they may give their approval only to those who can turn in a flawless performance.

But before you apply for a mortgage, credit card or personal loan there are steps you can take to improve your credit status and encourage lenders to look more favourably at your application.

Read more of the article by Emma Simon at the Telegraph

How to improve and protect your credit rating

A poor credit rating can limit your options. See our guide to improving your score or challenging wrong information.

Worried woman on phone checking credit card / bank statement / bills. Image shot 2008. Exact date unknown.

Why does a bad credit rating matter?

A bad credit rating can limit your borrowing options. County Court Judgments (CCJs), defaulted payments and bankruptcy orders leave a black mark against your name when trying to secure credit.

Meanwhile, if you miss credit card payments, direct debits for energy bills, or other commitments, you could find a mark placed against your name that will cause you problems.

The first sign can often be when you apply for credit and get turned down. This then leaves footprint on your file and if you collect a lot of these it could make matters worse.

Read more at this is Money

Other Resources:

How to improve your credit score at MoneySupermarket
Tips to increase your credit score at Experian
How to improve your credit rating at the Money Advice Service

About the Author

Andrew Eagle has worked in the Finance Industry for over 26 years, currently specialising in bridging loans. He regularly contributes to blogs on bridging finance. Find him on Google +

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