In order to get any form or credit or mortgage these days you need to have a good credit rating or most banks and lenders will refuse you.
Here are some steps to improve your credit rating:
- Pay Your Bills on Time: Late payments can negatively impact your credit score.
- Pay Down Your Credit Card Balances: Try to pay off your credit card balances in full each month.
- Avoid Payday Loans: These can lead to a cycle of debt and negatively impact your credit score.
- Use Your Credit Card Regularly: Use your credit card a few times each month without borrowing on it.
- Maintain a Long and Diverse Credit History: The longer your credit history, the better your credit score can be.
- Ask for a Credit Increase: If you’ve been making your payments on time, your credit card company may be willing to increase your credit limit.
- Check Your Credit Report Regularly: Make sure all the information is correct. If you find any errors, report them immediately.
- End Financial Associations with Ex-Partners: Your credit score can be affected by the financial behaviour of anyone you’re financially linked to.
- Reduce Your Overall Credit Usage: Try to use no more than a third of your overall credit limit across your cards.
- Register on the Electoral Roll: This can help credit reference agencies verify your identity and address.
Remember, improving your credit score takes time and patience, but following these steps can put you on the right path. Here are just a few examples but if you know of any others get in touch with Money Moo in the comments section below.
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