How To Improve Your Credit Rating
There are many techniques and strategies that you can use to improve your credit rating, so follow VideoJug's guide and learn how to do so with our help.
Step 1: Use your credit card
Without spending any more than you normally would, use your credit card instead of paying cash for everyday things like the weekly supermarket shop, petrol and clothes. Regular use of a credit card slowly improves your credit rating.
Step 2: Pay on time
But it cannot be stressed enough, you MUST pay this balance off ON TIME every month - If you don't then your credit rating will plummet very quickly. Remember you are using credit for a purpose here - to rebuild your rating - and not to actually gain credit.
Step 3: Electoral role
Make sure that you are on the electoral role, that you are registered to vote in your local area and that your address on the electoral role is up to date. Companies like Experian, Equifax and Call Credit report to credit companies using this information. It is unlikely you will be given any credit if you aren't on the electoral roll.
Step 5: Buy with interest free credit
For bigger purchases of white goods like washing machines or TVs, try and buy on 'Buy now pay later' deals which offer 6 or 9 months interest free credit. But again it is critical that you pay off the balance on or before the free interest period expires.
Step 6: How does all this work?
What all of this granting credit and paying back credit (on time) is doing is generating positive credit feedback in your name to the credit agencies. What it tells them is that this person is a regular borrower but more importantly always settles his/her bills on time, and that is a major plus. This person becomes a person credit card companies want to lend to.
Step 7: Good credit takes time
Strategies like this will take at least a year and maybe a few years to start to take effect but there is really no other way to do it. Good luck and remember if this strategy is to work then you must get organized.
