Jul 16

Five secrets for improving your credit history

If you have a bad credit history then it can be hard to get the loan that you need and many of the best credit card deals will not be available to you. Luckily there are ways to repair your credit history over time.

1) Make your payments on time. If you don’t think you are going to be able to pay on time then contact your lender and ask if they can make the repayments smaller and more manageable.

2) Register on the electoral roll at your current address. Lenders use the electoral roll to check your name and address so not being on it can cause problems. It may appear as if you have no credit history or they may automatically reject you.

3) Build a good credit history. If you have no real credit record then companies will find it hard to judge how reliable you and are unlikely to give you the benefit of the doubt. Borrow money and pay it back religiously on time every month. If companies won’t lend you any money there are credit cards out there especially for people with bad credit. They tend to have a high interest rate attached them so only use one if you can pay the money back before the interest kicks in, but if you can it’s a good way to get the benefits of a credit card while repairing your credit record at the same time.

4) Find out why you have been rejected. If you get rejected, find out why. Go through your credit record and make sure all the information is correct and up-to-date. If you have paid a court judgement, for example, make sure it is shown as settled or if a bankruptcy order has ended make sure it says so on your report. If you don’t investigate before applying somewhere else you just increase your chances of being rejected and every credit check is logged which could adversely impact your chances of getting a loan. It is also a good thing to space out your applications as lenders might see too many applications in a short period of time as desperation.

5) Avoid credit repair companies. Credit repair companies can actually make your situation worse rather than better. The Office of Fair Trading has warned that the advice and information from these companies may be wrong and similar services can be provided free of charge by other companies.

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