- Did you know it was possible to improve your credit score without actually having much funds available in your personal bank account?
- It is even possible to obtain a good credit score after having a bad credit rating, when living in and out of a personal overdraft!
To increase your credit score or improve your credit rating you need to pay any credit account you have on time and make sure your payments are for the correct amount. It does not matter how much money you have in your bank account. It is as simple as that, if you are struggling with credit accounts get rid of them where possible.
Start a fresh and gain control on a monthly or weekly basis!
Car finance and all other types of credit agreements are listed on your credit report so it is important too keep up with all agreements not just the ones that are important to you.
Most people suffer from a bad credit score due to not being able to keep up with regular monthly repayments, some months they encounter extra unexpected living costs, such as motor breakdowns and domestic appliance problems.
- These tend to need immediate attention which costs and these costs are what tend to set the individual back.
When payments are then missed for credit accounts, the credit companies are duty bound to update the credit reference agencies monthly such as Experian and Equifax. These credit reference agencies keep your credit file up to date so that when you apply for any borrowings or credit, the lender you are applying too has the right with your permission to search your credit file for any information they may require to either approve, or decline your application.
- When an application for credit is refused or turned down, the lender is under no obligation to tell you why. This can often offend people but the policy not to disclose the reason for decline is normal practice within the credit industry.
If you have never seen a copy of your credit report, it can at first take time to understand. Once you have seen it you will feel more comfortable looking at it next time you need to, and so on. It is important to keep a check on your credit report as this can inform you of any searches that have been made in your name without your awareness.
Credit Expert from Experian is the most well know of the credit reference agencies that allow you to view your credit report online. They offer a free 30 day trial. This is a trading name or brand of a company called Experian who advertise on Television, you may have seen the credit expert TV adverts.
Lenders use different parts of your credit report to assess if they are able to lend to you, this differs from lender to lender. If you make multiple applications for credit and get refused within a short period of time, say one day to a week or even within one month, you can reduce your credit score that way, so be careful when applying for credit.
Prospective lenders do not like to see many refused applications for credit within your file over a short period of time, it can show that you are desperate to obtain the credit and this can worry a lender.
If you need advice regarding clearing personal debts after suffering a bad credit history, you can call our personal debt helpline 24 hours a day in total confidence using 0800 018 6868.
