How to Improve Your Credit Rating
In today’s climate of credit crunch, nervous investment and the number of financial institutions that are going to the wall, it is not surprising that lenders want to cover their backs as much as possible. They need to be as sure as they can that borrowers will be able to pay back the money that has been lent to them.
Pretty much everyone now has a credit rating. In the main, lenders use one of three credit reference agencies who compile factual information on our financial backgrounds. These agencies, CallCredit PLC, Equifax and Experian, although business rivals all work more or less in the same way.
They all research our credit histories from a variety of sources including Count Court Judgements, the electoral roll and by finding out if past debts have been paid on time.
A poor credit history doesn’t necessarily mean that you will be refused a credit card or a loan but you will probably have to pay more for it. Usually, the self-employed or people on short-term contracts are those who are less attractive in terms of their risk to lenders. There are lots of different reasons why people are refused credit but one of the major factors can be down to information about you (often provided by the credit reference agencies) which suggests that you may find it difficult to repay a loan. What can you do to make sure that your credit rating is the best that it can be?
Firstly, make sure that all your payments to creditors are made on time. If you do have to miss a payment, you must inform the creditor and also make sure that a payment is made the next month.
You can also boost your rating by simple measures like making sure you are on the electoral register or ensuring that you have filled in credit application forms properly. Obtain your credit history from one of the agencies. It costs as little as
In today’s climate of credit crunch, nervous investment and the number of financial institutions that are going to the wall, it is not surprising that lenders want to cover their backs as much as possible They need to be as sure as they can that borrowers will be able to pay back the money that has been lent to them
