How to improve credit rating

Reason123

Hi guys

I have applied for a new 0% credit card but have been refused?

I have never missed a payment on my current card.
I have never missed a payment on my mortgage.
I have never missed a utilities payment.
I dont have any loans.
I am on the electoral roll.
I am in my overdraft at the moment? (But not going over) But would this really lower my rating?

How can I improve my credit rating and how long should I wait until I re-apply for another credit card?

I do have a small credit card (limit 400) which is never used. Shall I use this and pay off the full balance every month to raise my rating? Anything else?

Cheers Rob

Reason123

Adding to above, would it make a difference if I wait until the credit card bill comes at the end of the month to pay rather than going on line a few days after payment and paying of the sums, after each transaction?

Daisy_Duck

Hello :wave:

Martin has an article about this here...

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

And there's a related thread here...

http://forums.moneysavingexpert.com/showthread.html?p=13090901#post13090901

Might be of some help? Good luck!

Moggles_2

How long have you held your two credit card accounts?
When you have operated these two cards for 12 months, you'll find it easier to get the cards and credit limits you want.

If you already have 12 months payment history, I would check your credit files, if you haven't already, to see what's on there. Mistakes happen.
For links, see page 1 of the *How to obtain credit reports* sticky.
Once you know what potential lenders will see, you are in a better position to improve their opinion

Moggles_2

Would it make a difference if I wait until the credit card bill comes at the end of the month to pay rather than going on line a few days after payment and paying of the sums, after each transaction?

It takes time to build a good credit history. It makes no difference whether you pay off each transaction separately or together, provided that you allow sufficient time for your payment(s) to clear before the payment due date.

The chief thing is to keep within your Ts & Cs. If you always pay up on time each month and don't exceed your credit limit, your credit history will steadily improve

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

Reason123

Thanks all for your help