Top Tips on How to Improve Your Credit Rating

You can end up with a poor credit rating for a number of reasons, be it not paying your bills on time or even not having built up a sufficient history in the first place. The latter in particular can be especially frustrating, and is a problem commonly experienced by young people (such as university students) or those who have recently moved to the UK. However, even if your credit rating has seen better days, there are plenty of relatively simple things you can do to help get it back on track. For example:

• Don’t falsify information on any credit applications

This should go without saying, but supplying false information on any application is generally not a good idea and, in the case of a credit one, it can negatively affect your score (and, if you’re attempting to improve it, this is definitely something you don’t want to do).

• Make sure to pay bills on time

Arguably a pretty straightforward goal but an important one nonetheless. Unpaid bills can lower you credit score, making it harder to get credit in future. However, keeping on top of bills payments, for everything from your mobile phone to the utilities, helps improve your credit history and build your overall score; make sure your payment clears in time so as to avoid incurring any potential penalties for lateness.

• Don’t exceed any existing credit limits

If you currently have any credit limits to be mindful of, it’s important not to exceed them. This can quite easily negatively affect your credit score and thereby make it more difficult for you to get credit in future.

• Register on the electoral roll

Even if you’re not intending to vote, it’s a good idea to get yourself onto the electoral roll. This is done with your local council and only takes a few minutes to do. However, it can help with starting to establish a healthy credit footprint.

• Build up a credit history with the appropriate credit card

There are a number of credit cards on the market specifically tailored for those with a bad or nonexistent credit history. Often able to help even if you’ve been turned down elsewhere, they can help you build up a credit history and thus improve your overall credit rating (you will, however, have to make sure you keep to your limit and stay on top of your payments as with any other credit card).