If you believe everything in the news these days, it’s almost impossible to get a good deal on credit. Luckily, that’s just not true. If you have a good credit rating, you can still qualify for some great deals – whether you want a card, loan, mortgage or simply the right mobile airtime package. Follow these tips and you could see a real improvement to that all-important number.
 

Month 1

Check your credit report.
It’s crucial that this is up to date and accurately reflects your circumstances, so lenders don’t turn you down unnecessarily or lend more than you can really afford to repay. Start by getting an overview of your credit accounts and how well you’re managing them, and don’t worry, checking your Experian credit report online does not affect your credit rating.

Month 2

Register to vote at your current address.
The electoral roll is used to confirm that you live where you say you do – you may lose points if you don’t appear and lenders may ask you to provide further proof of residence or even turn you down.

Month 3

Close unused accounts.
Target unused accounts listed on your credit report and close them down. Lenders take into account the amount you could borrow when they decide what to offer you. Lower that total and you could increase your credit score.

Month 4

Rationalise your borrowing.
Get out your statements and work out which of your remaining accounts are costing you most in interest, then do your research to see if you can roll them up into a single, less expensive loan. If that’s not possible and you have spare cash, use it to pay off these debts first – as your balance falls, your credit rating could rise.

Month 5

Explain yourself.
Past financial problems such as missed repayments stay on your credit report for at least three years, while IVAs and bankruptcies are there for a minimum of six years. If special circumstances explain why you got into trouble, you can ask to add a note of explanation, called a Note of Correction, to your report that will be seen by lenders. 

Month 6

Protect your ID.
ID fraud is one of the fastest-growing crimes of the 21st century. It takes place when a criminal gets hold of enough of your personal data and impersonates you and can have an adverse effect on your credit rating. When you check your credit report, look out for unfamiliar transactions or applications and tell the lender immediately if you think you’re a victim.
So how are you doing?
See whether you’ve boosted your credit rating by ordering your Experian Credit Score. It won’t be exactly the same as one calculated by a lender but it will demonstrate the impact of your credit history on your credit score and help you to track your progress.

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