A VIDEO GUIDE TO IMPROVING YOUR CREDIT RATING | A PRACTICAL PLAN AND “HOW TO” TOP TIPS


Hello and welcome to Solution Loans. This
short video covers a guide to improving your credit rating. If you have a less
than perfect credit rating from financial mistakes in the past you will
find your borrowing options have become more limited. Even missing direct debit
payments for utility bills can leave a mark against your credit file which
could cause you problems should you want to apply for a loan or a credit card. If
you find yourself in this position the first thing to know is that you are by
no means alone. No matter what your circumstance is virtually every problem
obtaining credit can be repaired given time and by following some simple steps.
First obtain a copy of your credit file from one of the main credit reference
agencies. These are Equifax, Experian or Call Credit (TransUnion). These will better help you
find out what exactly might be impeding your ability to get credit. When you look
for your credit report make sure that there aren’t other people’s credit
histories recorded mistakenly against yours. Make sure you are registered on
the electoral roll at your current address. It’s surprising how many people
are refused credit simply because they haven’t updated the electoral roll with
their current new details. Ensure that you don’t have joint credit with a
former partner. If that person has a less than perfect credit rating then this
will affect your ability to get a loan or credit card especially if the credit
reference agencies believe that you are still linked. Next request a credit
reference agency to remove any out of date information. Information is held on
your file for a minimum of 6 years and includes settled accounts, defaults,
bankruptcy orders, individual voluntary arrangements, county court judgments and
fines imposed at magistrates courts. In some cases utility companies also
register missed payments on electricity, gas, water or phone bills with a credit
reference agency. Close any accounts, cards or mobile phone contracts that you
no longer use. The more credit accounts that appear on your file the more of a
red flag to finance companies. Don’t make multiple applications for financial
products like credit cards, loans or mobile phone contracts. These
applications will be registered on your credit file and will be seen by other
lenders who might judge that you’re in financial
difficulty. Stay on time with your payments to your existing credit
providers for current agreements. Look for credit deals that allow soft
searches – those which allow you to get a quotation before proceeding to carry out
a real credit check. These will allow you to test the water before actually going
ahead and making an application. Ensure your correct name and address are
registered to all your current credit agreements. Start rebuilding your credit.
It may sound counter intuitive but successfully applying for a credit card
or loan that is tailored specifically for people with less-than-perfect credit
scores can put you back on the path to having an excellent credit rating. There
are a large number of loan, card and other finance providers who have
products designed to help you in this situation. The interest rates may be
higher than for those with perfect credit will pay but if you religiously
make your payments on time, pay off the balance on your card and use your new
accounts in moderation then this will all have a positive effect on your
credit rating. Keep your balances low by avoiding
carrying a balance of more than 30% of your credit limit on a card. Some lenders
may view this as debt that could become unstable should your circumstances
change. Remember, be patient. Rebuilding your credit rating is not something that
happens overnight. You can’t rush this because it takes time for your new
credit history to overwrite your old one. You need to remember that you’re
demonstrating to potential lenders that you’re not dependent upon credit for
your day to day life but instead you want to use these products responsibly
to make your life easier. With patience and time you can rebuild your rating and
successfully apply for any consumer credit product. As mentioned in the plan
there are loan products specifically designed to help you recover a good
credit rating and we have access to many of these.

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