Continuing from Part 1:
4. Pay on time
Paying the debts on time works favorably. It shows that you are a responsible borrower and can be trusted with the loan. As a credit rating is aimed to show a lender that you are reliable and will return the money, paying your loan repayments on time sets a solid base and shows the lender that they will receive a steady income of interest when expected.
Erratic payments give them the impression that you do not responsibly put your debt repayments first and may not always have the financial means to repay loans.
5. Repair credit with a credit-building pre-paid card
A credit rating shows a lender that you can pay a debt off over time at the correct time. Some prepaid cards have an option to rebuild your credit where they ‘lend’ you £60. They will then charge £5 a month, which will repay the loan. If you keep this card for 12 months, a record will be entered into your credit portfolio, which demonstrates that you consistently paid off a ‘debt’ over a 12-month period.
6. Get a credit card
If you have never had a credit card or borrowed any type of money, then you will not have a credit portfolio. This means you have a credit rating of zero. This zero credit rating cannot tell the creditor whether you can be trusted to return a debt, so they will often reject you for a loan.
By applying for a credit card, you can use it a little at a time, paying it off steadily. This shows to a creditor that you have borrowed money and paid it back responsibly.
7. Enroll to vote
Getting yourself on to the electoral roll will help to show that you are who you say you are. Credit reference agencies use the electoral roll to match you to your details. By having this as proof of your identity and your address, a credit reference agency sees this as a sign of stability, which improves your trustability.
8. Stable yourself
Having the same job, living in the same place, and having the same bank account over a long period of time demonstrates stability. These things show that you have a routine and can add a repayment to that routine. This will improve your credit rating. Someone who lives in erratic places switches jobs frequently, and does not have a bank account is far less likely to show responsibility in terms of loan repayments.
9. Get debt advice
If you have found that your credit rating is bad due to debt, you need to try and work your way out of financial issues. It can be difficult to know where to start yet debt charities provide free debt advice to help you cope with the issue. You can speak to professionals who will help you to build a plan, which will help to end your spiral of debt at an affordable rate.
10. Credit Report/History
It is important to remember that you are the only person who can see your credit report. However, creditors can access it once you give permission so that they can check your rating and payback history. It is important to check it before giving permission to anybody, as the best way to avoid loan rejection is to fix your credit score from the beginning.
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- AMD Ryzen 3 3200U Dual Core Processor (Up to 3.5GHz); 4GB DDR4 Memory; 128GB PCIe NVMe SSD
- 15.6 inches Full HD (1920 x 1080) Widescreen LED backlit IPS Display; AMD Radeon Vega 3 Mobile Graphics
- 1 USB 3.1 Gen 1 Port, 2 USB 2.0 Ports & 1 HDMI Port with HDCP support
- Backed by the best of Microsoft, including Windows
- Designed for Windows 10 s
- Natural typing and trackpad experience
- 11.6" 1366 x 768 HD resolution. IPS technology for wide viewing angles. Energy-efficient LED backlight.
- MediaTek MT8173C Quad-Core Base Clock Speed 1.3 GHz, Maximum Boost Speed 2.16 GHz (4C, 2x A72 @ 2.1GHz + 2x A53 @ 1.7GHz)
- 4GB LPDDR3 SDRAM, 32 GB Integrated eMMC, No Optical Drive
Last update on 2020-03-19 / Affiliate links / Images from Amazon Product Advertising API
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