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REBUILDING a bad credit rating is possible, and whilst it may take patient and diligence, it's not as impossible a task as it may seem. To improve your credit rating you can:
- Check your credit report
Find out what your credit score is - not only will it enable you to monitor your progress, but you'll also know exactly what you score is.
You can also check for any mistakes or fraudulent activity - they could be affecting your score and can be rectified immediately.
Credit reference agencies Experian or Equifax can provide access to your credit report.
- Budget your income and keep on top of any bills and repayments
The best way to improve your score is to better handle the finances you have already.
Paying bills late can knock points off your score, so remember to pay bills such as electricity, gas and other services as soon as you receive them - being a speedy payer can help to improve your credit score.
- Take out a credit card designed especially for helping people to improve their credit score.
One of the best ways to improve your credit score, is to actually make use of credit. There are credit cards available to people with a poor credit history, that - if used wisely - can really help to bring your credit score back to a healthy level.
Remember to use these cards as you would a charge card - repay them in full - interest rates are high and you should avoid getting back into debt.
Compare credit cards that can help improve your credit rating.
- Remember, you can always seek specialist advice
Such as Citizens Advice Bureau or the National Debtline.
Credit ratings
Consumer debt levels in the UK have reached sky high levels over recent years, and the level of bad debt in the UK recently broke through the £100,000 barrier for the first time. This reflects the growing number of people in the UK that have ended up with a bad credit rating for one reason or another.
A wide range of situations can affect your ability to keep up with repayments on debts and with bill payments, such as loss of income, loss of a partner, divorce, and various other changes in circumstances. Unfortunately, the end result is often the same – a tarnished credit history and a low credit rating.
Having a low credit rating can affect your financial future quite significantly, and for some this can prove a real problem.
For instance, if you are hoping to get onto the property ladder or buy a car at some point in the future, you may find that your poor credit rating will stand in your way.
In fact, in some cases you may even find that something as seemingly simple as opening a new bank account is impossible, simply because of your credit rating. The good news is that there are ways to improve your credit rating, although this does not include any quick-fix miracle solutions.
Start improving simply...
The key solution to improving your credit rating is to ensure that you start managing your financial commitments, such as bills and loans, more effectively.
This means making repayments for at least the minimum amount required – preferably more – and making them on time.
It can be an arduous and laborious task, but slowly and surely your credit rating will start to rise as you continue to make your repayments and stick to your financial obligations.
Get credit working for you...
Taking out further credit can actually really help improve your credit score, and this is not as difficult as you might think, as there are specialist finance deals that cater for bad credit consumers.
For instance, you can apply for a credit card that specializes in lending to those with bad credit.
This is not to say that you should get yourself deeper into debt. These cards are designed to help consumers to improve their credit by enabling them to benefit from a low credit limit, which is easier to repay.
The idea is that you use the card regularly to make purchases, such as every day items, and at the end of the month you clear the balance on the card. This means that you won't get charged interest and you can continue to work on your credit rating.
Be diligent with your finances
As part of improving your credit rating it is vital that you do not make late repayments or miss payments on your bills and other financial commitments, as this can have an adverse effect on your credit.
Remember, it is far easier to knock your credit rating down than it is to try and build it up again!
Keep watch of your credit report
You should keep a regular eye on your credit report, as your credit rating could be affected by something as simply as a computer or human error or even as the result of fraudulent activity.
Order and check your reports on a regular basis, and if you find any inaccurate information or something appears to be amiss make sure that you contact the credit agency to advise them.
Regularly checking your credit report is also a good way to keep tabs on your financial commitments and monitor the progress of your credit rating.
Credit reference agencies Experian or Equifax are able to offer you online access to your credit report.
Want your credit card questions answered? Email us at for a speedy response.*
*Please read this before contacting us:
If you ask us a question we may publish your question and our response on our website, we won’t include your full name or email address but if you do not want your question published just let us know. We will do our best to reply to all questions as quickly as possible, however we can't guarantee a response.
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Please note any answer or reply we send you or publish on our website is based on general factual research and does not in any way constitute financial, investment, tax or other advice. Any response we give is intended to provide general information only and does not attempt to give advice that relates to your specific circumstances. You are advised to discuss any specific queries or concerns with your bank, an advisory body or a financial advisor. You are also advised to conduct your own research before acting or not-acting on any issues raised.
If you are worried about debt or are experiencing any financial difficulties please contact the CCCS or National Debtline who will be able to offer free and impartial advice. You can also access free rights advice through Adviceguide from Citizens Advice Bureau. We are not in any way connected to the CCCS, National Debtline or Citizens Advice Bureau.
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