Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

How to Improve Your Credit Rating by Staying on Top of Your Loans

Improving your credit rating can seem like a tricky thing, and it’s very important if you want to get cash loans without a lot of headache, but in the UK, it’s simple to improve your credit rating if you know how. At the end of the day it’s about being mindful of how you use credit and how you pay it back. First, if you have any late or missing payments, they need to be paid off. Then you can follow these simple steps and you’ll see your credit rating improve in no time at all.

Always pay back your loans on time

It’s obvious, but nonetheless it’s important to talk about. The most important thing for your credit rating is timely payment of your loans. And if you really want to increase your credit rating, minimum payments aren’t going to cut it. The absolute best thing for your credit rating is paying back loans in full on the due date. This way you show good credit practice by paying off your loan in full rather than going through minimum payments, and you avoid missing out on developing a longer credit history by paying off the loan too early.

Develop a good credit history over time

As long as you pay your loans on time, using your credit card regularly is quite good for your credit rating. Showing that you have a history of using credit responsibly proves your trustworthiness to lenders and increases your rating. Letting your account sit unused isn’t going to help at all.

Increase your maximum credit and only use a small percentage of it

Periodically ask to increase your maximum credit. This doesn’t mean you should go off and use your newly found credit to its limits – in fact, quite the opposite is true. Using a smaller percentage of your available credit is good for your credit rating. As a general rule, you should try to keep your debt as 30% or less of your available credit. Maintaining a good debt-to-credit ratio like this is a great way to increase your credit rating.

Make sure your credit reports are accurate

You could be following all of these practices correctly, but it doesn’t matter if your credit report is inaccurate. Get a copy of your report and ask yourself the following questions:

• Is all of the personal information on the report accurate?

• Are all of your credit accounts on the report?

• Are there any accounts or applications for credit that you don’t recognise?

• Are there missing or late payments listed that were paid on time?

• Are there items from long ago that are negatively impacting your credit? (most bad credit items such as bankruptcy, property repossession, or county court judgements can be removed after six years)

If you find errors in your report, you have to dispute the specific items with the credit institution that provided that information for the report. You can also consider hiring a credit repair company to help you do this.

If you follow these steps faithfully, you’ll see a marked increase in your credit rating – even if you’ve had troubles with it in the past. While your past credit history can haunt you for up to six years, lenders care more about your ability to pay back cash loans in the future, and the more you show them you can use credit responsibly the more likely you’ll be able to get a loan. If you need a cash loan but don’t have the right credit rating, you can always get a loan instantly with a guaranteed payday loan. Often you can get an instant loan of up to £500 or more regardless of your credit rating.

Fernovo can offer you a fast online loan in as little as 15 minutes, if you’re ever in a pinch and need a cash loan just submit your application at (Fernovo.com) and we’ll be able to help.

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