How to Improve Your Credit Rating in 4 Easy Steps

Past financial mistakes can cause people real difficulties in the future

1) More Expensive Loans

A limited choice of options that are typically much more expense

2) Rejected for mobile phone contracts

Much more difficult to get utility and mobile phone contracts

3) Turned down as a tenant

Fewer Landlords will take tenants with a poor credit history

Improving your rating can therefore have real benefits, and we look at the 4 steps needed to do this.

Step 1: Buy a full multi-agency copy of your file

 

We recommend getting a fully detailed copy of all checkmyfile logothe information all the CRAs (Credit Referencing Agencies) hold on you.

With this information you can then start to develop a plan for improving your file.

To get your report straight away go to www.checkmyfile.com

Step 2:  Make sure all the information being held us up to date and correct

Now you’ve downloaded your report you now need to look through this and make sure everything is as it should be, including:

1. Electoral Roll

Your electoral roll stats does affect your score, and on your multi-agency report, you need to make sure that the information Equifax, Experian and Call Credit hold on you is up to date and correct (and this includes other people registered at your address.

If your electoral roll information is not correct, you can speak to a Check My File Agent on 0800 612 0421 who will be able to help you get this corrected.

2. Payment Mistakes

Other mistakes could be for example missed payments that you did in fact make. Though if there are mistakes, unfortunately you only have 28 days from the time the mistake first appeared to get it corrected.

What you need to do is write about 200 words explaining what something is not correct and what was actually happened, and submit to the relevant CRAs.

Step 3: Other things you can do to immediately start improving your personal rating

 

1. Limit your number of new applications

This may seem like a strange item, one of the main a blank tick listdrivers for improving your rating is to be able to get access to loans and finance. Though failed loan applications do not look good on your file, and the more you have, the worse your file looks.

So if you are going to apply for finance, make sure you do your legwork first, know how your file looks, and only apply to places where you know you will get accepted.

2. Cancel unused cards

This not only helps to improve your financial record score, but will also reduce the risk of you falling victim to fraud (which is very common with cards).

3. Negotiate with existing lenders

If you have existing lenders with whom you have defaults and missed payments, you can try negotiating with them – whereby you pay off some of the outstanding loan in return for them removing the missed payments and defaults from your file.

This does not always work and does require you to have the money to pay off some of the outstanding debt, but if you do have the cash, it is worth a go.

Martin Lewis, from MoneySavingExpert.com offers some additional tips for boosting your credit rating in the following article:

Step 4: Start successfully making repayments

One of the reasons why lenders put so much weight on a person’s credit file, is that they want to see a history of successful repayments. So the quicker you can start showing this history on your file, the quicker your score will start to improve.

There are a number of ways that you can do this:

a. Credit Builder Pre-Paid Card

A-Picture-of-a-Credit-CardSome cards are specifically designed to help you build your score. You are typically loaned a small amount, usually £60. You then sign a credit agreement and pay back about £5 a month. Though there are fees and charges involved.

b. Credit Builder Card

These are like other cards, but the interest rates are higher (around 30 40%) and limits are typically small at around £500.

c. Bad Credit Options

There are many different types of finance available to those who have a with a poor credit rating, these include:

  • Payday lending (short term options up to £500, very expensive at APR’s up to 5,000%)
  • Doorstep Lending (small options up to £500, monthly repayments up to one year, APR’s typically 275% up to 550%
  • Guaranteed Loan (£50 to £10,000, requires a friend or family member to guarantee you repayments, APR’s typically about 600% for options up to £500 and 50% for options from £500 to £10,000).

What is your current rating?

We strongly recommend heading over to the Checkmyfile website to view the UK’s only multi-agency report if you would like an up-to-date view of your credit score.

Once there you will have the option to sign up for a one off FREE 30 day credit report. To view your one off 30 day FREE report, please click here. Alternatively, if your FREE period has expired, you can order a comprehensive credit report for a one-off payment of £19.99 by clicking here.

Checking Your Credit Report
Checkmyfile

Testimonial Checking Your Credit Report


Check out our range of options

To get a range of £50 to £10,000 ‘no credit score’ financial offers use our calculator to see how much you can afford and then submit a single application to many of the UK’s best lenders.

Return to the previous page


Helping you to find affordable options

  1. Poor financial history ok

  2. Affordable rates and fees

  3. Fast application and payout


Plus
  1.   One application to multiple lenders
  2.   No broker or application fees
  3.   No early redemption fees
  4.   Secure online application

how much

How it works?


Quick application for £50 to £12,000
no risk free
  • No credit checking*
  • No obligation information
  • No application fees
  • Secure online application


4 Easy Steps


1. Calculator

Calculate how much you can afford to borrow and for how long

2. Easy Online Form

One quick online form to our panel of multiple lenders

3. Multiple Offers

Receive a choice of no obligation offers from multiple lenders

4. Get Your Money

Send off your preferred offer and get your cash




Save time with one easy online form

Why spend time filling out lots of different forms to numerous lenders?

  • Amigo Loans Logo
  • Consollo Logo
  • UK Credit Logo
  • First Stop Guarantor Loans Logo
  • George Banco Logo
  • TFS Loans Logo
  • First Banco Logo
  • The Quick Cash Club Logo
  • One Plus One Loans Logo

With us you just fill out one easy form

Borrowing + interest & fees of = Total to repay
* Based on repaying after 30 days

Borrowing over your repayments will be approx. per month and in total. For actual figures hit Get My Loan to get a choice of free, no obligation loan offers from the best bad credit loans lenders in the UK.