Everyone has a Credit Rating – Why you should protect it…
Some people take their Credit rating very seriously and others don’t. It’s very easy to damage your credit rating. Just miss a couple of your credit repayments or make too many applications for credit in a short period of time and things can start to slide. More serious issues like Serious arrears, Defaults, CCJ’s and your Credit rating can be seriously damaged. The good news is you can start to repair your Credit Rating. Credit Ratings can be repaired although it does take time. A good Credit Rating shows potential Lenders, Landlords and Insurance companies that you are able to manage your finances well.
Time & Careful management will help…
If you have suffered due to previous credit problems and you want to start building your Credit rating consider changing your energy supplier to one who reports your payments back to the Credit reference agencies. You could save money too! Even a small change of your Telephone or Broadband supplier and keeping up those repayments each month will start to show you are starting to keep up to date with your repayments. Missed repayments, Defaults and CCJ’s are available to see on your Credit reference reports for up to six years but as these get older and if they are backed up with good repayment history, future lenders will start to take less notice of them.
Remember, if you are serious about becoming Credit Worthy, your journey starts once you decide to take control. There is no such thing as Credit Blacklist and any problems you have experienced won’t last forever. Just like a good credit rating can be damaged, a bad credit rating can be repaired.
It’s not instant fix, but taking control and starting to make repayments on time each month and keeping applications to an absolute minimum will help start to show future lenders you are serious. Consider applying for a Credit Card aimed at those rebuilding their credit rating, such as the Capital One Classic Cards or Vanquis Credit Card. You can check your Credit Rating at anytime now, All of the UK’s Credit Reference agencies now offer Instant Access, if you would like to see what your Credit File is reporting, click here. You can check your Credit Report and Credit Score totally free of charge with our range of totally free trials and no Credit Card required Credit Reports.
Once you have your a copy of your Credit Report, you can check it’s up to date. Make sure all of the information is correct and from this point onwards, you are going to probably be aware why you are being rejected for credit.
Your Credit Rating is very important, and the good news is that you can start rebuilding it anytime you choose. If you are being rejected for everything you apply for it could be a good idea to stop applying and take out products/services that will report your repayments back to the credit reference agencies.
For example, if you switch your Broadband to a supplier like Talk Talk or BT, they will report your repayments back to the Credit Reference Agencies, in 12 months you will have 0 applications for credit and 12 months of repayments made on time (if you pay on time of course).
If you are able to apply for some revolving credit then do so, but spend wisely and try to use it to your advantage by making the full repayments each month. Doing this will result in very little if any interest.
Catalogues, Credit Cards and Mobile phone contracts can help build your Credit Rating. If you are able to apply for some sort of revolving credit and can afford to do so, do. It will help improve things further.
If you have tried to apply for a Credit Card or Catalogue but have been rejected, consider a Guaranteed no Credit check mobile phone contract or Guaranteed no credit check Catalogue or just consider switching your Broadband or Energy supplier. As long as you are starting to demonstrate a good repayment behaviour, over time, things will start to improve.