E-mail :

Password :

Forgot Password? | Sign up for Free

Four Steps to Re-Building Your Credit Rating

Posted by : Premraj | Posted on : Monday, November 20, 2017


Your credit rating helps lenders to determine whether to lend money to you, based on a number of factors such as how much money you have already borrowed, how many lenders you currently have, and whether you have missed any payments in the past, made late payments, or defaulted on a loan or other line of credit. Your credit rating is a hugely important part of your adult life that is the deciding factor in many big purchases, for example, buying a new car on finance, taking out a business loan, or even getting a mortgage for a house. Thankfully, if your credit rating is looking a little low, there are several methods of improving it. Here’s how:

#1. Pay off Your Debts

Firstly, the most important thing to do to improve your credit rating is to pay off as many debts as you can. Even if you can’t currently afford to pay all or some of your debts off in full, making regular monthly payments that are at least the minimum required amount will certainly help. You might want to consider taking out a debt consolidation loan and using this to pay off all or some debt since having one open line of credit is always better than having several if you manage it well.

#2. Borrow Responsibly

If you’re trying to build up your credit rating due to not having borrowed any money in the past, the good news is that this is usually much easier to do than if you are suffering due to being in debt. However, as somebody who is borrowing for the first time, it can be difficult to get accepted since lenders won’t have anything to go by when it comes to judging how responsible you are with money. A credit building credit card or Cash Lady’s loans for bad credit can help you to build your credit rating with regular, timely repayments.

#3. Check Your Credit Report

To really understand your credit rating, one of the first things that you must do is check your credit report. There are several free and paid services available for doing this in the UK and it’s a good idea to use at least two or three of them since different lenders may use varying credit reference agencies when running a credit check on you. Check your credit report regularly for any potential errors or mistakes that could be bringing your score down.

#4. Pay Bills on Time

Lastly, many people don’t realize that their regular household bills, such as water bills, gas and electricity, and broadband and TV can influence their credit rating. In fact, any direct debits or standing orders that come out of your bank account can affect your score. Because of this, it’s important to ensure that all your priority bills are paid on time and for the amount due.

Was this information useful to you? Would you like to add any tips of your own? We’d love to hear your feedback in the comments.


Comments : Post a Comment | Category : Credit Cards, Credit Repair, Credit Scores | Tags :

Managing your personal finances is hardly enjoyable, but doing it properly can make the difference between a lifetime of debt and a lifetime of comfortable living. If you compare two people with similar skillsets, the same education level, and similar expenses, it is perfectly possible for one to be drowning in debt and one to […]


Business in Budget

Understandably, startups can be packed full of enthusiasm and aspirations. However, as a young business steps out to boldly tackle their chosen market, often the company can get a bit too ahead of itself. It’s a hard truth, but to begin with startups simply need to survive their first few years. Cost considerations are key […]


tech solution

Small businesses have a lot to grapple with, particularly where their money is concerned. Unlike major multinationals, who have a team of in-house accountants and administrators, SMEs usually have to look for more cost-effective ways to manage their finances. In terms of accessing money, life tends to be harder for small businesses. For SMEs in […]


Small business in budget

Business is all about innovation, creating great products or services, making people’s lives better, and providing the market what it wants and needs, isn’t it? Granted, all these things are important. However, in the end, it’s all about profit. Not because business owners are selfish and money-oriented, but simply because a business that doesn’t make […]


Buy cell Phone

Becoming a full-time app developer takes time, but with the right strategy you can make it your living and call yourself a professional. Everything you need is out there, it’s just a matter of staying focused until you achieve your goal. Master The Basics. The first step is to get a good grounding in the […]


Security system

Living in a safe neighborhood or in a quiet area doesn’t protect you from home burglary. In reality, taking a passive approach to home security and neglecting your own safety actually increases your odds of getting robbed. According to data from Alarms.org, homes without a security system are 300 percent more likely to be burglarized. […]


Business in Budget

There are many considerations to make when establishing a startup, but one of the most important is the matter of funding and expenses. Many businesses fail because they don’t accurately estimate their costs and to put it simply, they run out of money. Don’t let your startup fall under that category – make sure you’re […]


Payday Loans

The Fundamental truth of any business is they need money to keep expanding. It doesn’t matter if they are a startup, or a liability corporation, you will need financial help to get yourself on your feet. But before you apply for a cash loan, you need to consider the following pointers! Accounts Receivable Asset-based lending […]


house on calc

You love your house, but you know it will eventually need to be sold.  If you are aware of this, you should also know that renovation projects now can still generate value for your home years down the line. When you do renovation projects, you want to make sure you are adding value to your […]



Many investors enjoy buying and trading penny stocks simply because it costs a lot less to buy large chunks of stocks. There is something very appealing about owning hundreds or thousands of penny stocks in a company that is about to take off, such as Apple did years ago. You can easily feel like a […]


Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video