Top Tips on How to Improve Your Credit Rating

Top Tips on How to Improve Your Credit Rating - It can be hard to shake a bad credit rating. Overdue payments on fast loans and other small things like unpaid video rental fees can even make a difference. Here, we've got a list of tips on how to improve yours. For those of you who are looking to improve your credit rating you won't want to miss these tips!

• Be aware- The first step is being aware of your credit history and finding out where you stand. You can do this for free online at a number of websites. Knowing what your credit status is and why it is the way it is, is the most important step to moving forward.
• Have a thorough look- From this you can see where your credit rating may have dipped. Make a list of anything you think may be incorrect. For instance, a phone company many have listed an overdue payment but you never recall being late with this. Be thorough and go through everything in detail.
• Follow up anything you are unsure about- Take the list of what you are unsure about and follow it up. In the example used before about the phone company, call them and find out why they have listed as a discrepancy on your credit file. If it is incorrect then you should be able to dispute it. In that case too, you should request that it be taken off your file as soon as possible.
• Learn from your mistakes-Now that you know what can give you bad credit, learn how to be able to avoid this from happening. If you have a tendency to get cash loans and don't pay them back on time resist getting them if you can't afford them. Living within your means is important and knowing your limits in terms of making repayments will not only make your credit status better but it will also reduce your stress levels.
• Improving your credit rating fast- This is how it works: Basically you can't get a credit status or change it without using credit, so the key is to use credit as much as possible, but always make sure you can make the repayments. So credit rating is based on the spending versus your repaying. Therefore, the more you use credit, paying it back on time, the better your credit rating will be.

Credit ratings can be used to show a lender in the future what type of customer you are and if you are able to meet the repayments on a loan they provide you with. This is especially important when you are considering getting a home loan. If you do have bad credit however there are a few things you can do, as listed above to help improve this rating. Speaking to a financial planner may also help you further with this. I hope our list of tips on how to improve your credit rating has given you some useful advice on how to go about improving your credit rating both now and in the future.