Improving Your Credit Rating

Credit is an integral part of the modern economy and nearly every member of the UK population has used credit at some point in their life. Even if this doesn’t involve directly borrowing money, any service that you use and then pay for later (like a gas bill, for example) will appear on your credit rating.

So, it’s clear that credit ratings are very important, particularly if you want to borrow big sums of money, but how can you improve your credit rating if you haven’t had the best borrowing history?

First of all, make sure that you use one of the online credit check tools (click the link to check credit rating) from one of the big credit agencies like CreditExpert, this will allow you to carefully study your credit history and clear up any problems that you come to light.

The first thing to worry about is general maintenance, so if there are credit lines that are still listed as open but are no longer used, close them down. If there are others that point to the wrong address, or have a slightly incorrect name on them, make sure that they’re right. The aim is to have all your personal details 100% accurate so that when you come to make an application there is no confusion.

After that a good next step towards improving your rating is to sign up for the electoral roll. It’s surprising how much of a difference this can make, but being signed up at the correct address will improve your credit rating.

Then, make sure that any issues/negative marks on your rating are dealt with. Sometimes you won’t be able to get rid of them altogether, but you can talk to the companies concerned if you have negative ratings and try to get them improved. Failing that you can always talk to an organisation like the Citizens’ Advice Bureau to help you improve your credit situation.

If you can’t get the issues dealt with straight away, the best thing to do is concentrate your resources to pay off troublesome debt. The idea here is to get rid of any credit lines that have been problematic completely. This could take a little while, but if you’ve got a bad credit rating it’s better to deal with the issues straight away. It’s certainly a good idea to clear up any problems before you make further applications that may well end up being rejected and thus have a further negative impact on your rating.

The final thing to remember is that a credit rating isn’t the only factor taken into consideration when you make an application and if you have had past credit problems you should always start off by talking to your bank.

Improve your credit ratings by a credit repair service

There may be many reasons of having a damaged credit. If you are thinking of filing for bankruptcy just because of tarnished credit, you now have some better options and improve your credit ratings. There are many online credit repair services that will help you in regaining control of your finances while improving your credit scores.

A reputed credit repair service company can clean up your credit file. While there are certain items that can be completely taken off from your credit report, but they can at least work on those negative items that can be taken care of and make your credit report look better in front of the potential lenders. These credit repair companies may charge you a modest fee which will be worth paying. Otherwise, with a bad credit, the potential lenders will not be willing to offer credit in the first place, and even if they do so, they will be charging very high interest rates when you take out a loan or a credit card.

Removing inaccurate negative items from your credit file: The credit repair company will pull your latest credit report and see the inaccurate negative items on your file. Although you can also find out the inaccurate negative items on your file and dispute it with the credit reporting agencies and the credit grantors, but the process of removing the negative items can take too much time which can often get frustrating at times. These credit repair services are charging you a fee for their service but they will assure you results at the earliest possible time. You just have to sit back and relax and see your credit ratings getting fixed at the earliest possible time.

Get rid of collections: The credit repair service will also work with accounts that are gone to collections. They will contact the collection agency and negotiate with them to reduce the outstanding balance as per your present financial condition.

Consolidate loans and credit cards: There are many credit repair services that offer consolidation loans. With this consolidation loan, you will be able to pay back some of your debts like a car loan or a home loan if you are expecting to default in their monthly payments. You may later pay the credit repair service for the consolidation loan at an affordable interest rate.

Avoid bankruptcy: Many people utilize the services of a credit repair company to avoid bankruptcy. Bankruptcy carries a stigma that is hard to get over and it can stay on your credit report for seven years. Most of the financial institutions will not be willing to offer any new credit just after you have filed for bankruptcy. Even if any company offers any credit, they will be charging very high interest rates on the credit. By utilizing the services of a credit repair company, you not only rebuild your credit, but you can also avoid filing for bankruptcy. This will help you in putting your life back in track and save a lot of money from being charged high interest rates and financial fees.