How Do We Improve Our Credit Rating?

It is a sad truth that many of us have less than perfect credit ratings. These days there are all sorts of ways for people to get into debt and it can be easier said than done to repair the damage, especially if people have borrowed large amounts of cash. Although the road back can be arduous, there are things we can do to speed the process up. So, how can we go about repairing our damaged credit rating?

The Obvious

This should go without saying but it is still worth a mention. Paying your debts off as quickly as possible is of paramount importance and the hard bit is often facing the problem. You can find out exactly who you owe money to by using one of the online services such as Noddle or Experian and you can the start to reach out to them to arrange a payment schedule. If it is all too daunting or they are asking for too much money then you can consider and IVA or debt management plan which can help to freeze interest and make the repayments more manageable. It goes without saying that once you have done this, you need to make all the payments all the time or you will be back to square one before you know it. If you do see yourself constantly in debt and need some support then The Money Advice Service or Satsuma Debt Support can give you the necessary help you need.

Refrain from Applying for Credit Unsuccessfully

Whilst you are in the process of improving your credit rating, it is important that you don’t do anything to compromise your efforts. Your repayments will be slowly but surely improving things but any unsuccessful applications for credit will just be cancelling these efforts out. Try to steer clear from credit until you have paid all your debts off and waited for any CCJ’s to expire. This takes six years from the date they were settled.

Check for Errors On Your Credit Profile

Although these are rare, they do happen. Check your credit profile carefully for any debts you didn’t actually accrue. Errors happen and ID theft is becoming a bigger and bigger problem in the UK, someone could have borrowed funds on your behalf. Take a look and if there is anything suspicious just contact the lender to get an investigation underway.

Register to Vote

Many people do not realise this, but becoming eligible to vote can actually help you to improve your credit rating. As well as allowing you to have a say on the political issues in your area, just signing up can give you a much needed boost, especially if you are having problems. Just go online to download a form and send this in the post to reap the rewards.

Follow these steps and you will get the ball rolling to a clean credit rating. Although it may seem like a long road, you cannot start too soon and you will enjoy the benefits in the future. If you are unsure about any aspect of your financial future there are many resources online such as Experian and the Money Advice Service.