Improving my credit rating

1940sGal

Is getting a credit card and paying it off right away the best option for improving a credit rating? Mine is quite low but my problem is that while i want to improve it I am currently unemployed.

Would it be a good option to get a card and only use it for things like petrol and food i.e small purchases that I know I can pay back at the end of the month?

stephane_2

If you are unemployed then unlikely that you would be accepted for a credit card....

smithers1981

best thing you can do is get a job.....

1940sGal

smithers1981 wrote: »

best thing you can do is get a job.....

That would be nice wouldn't it. In a perfect world I'd be walking straight into one after graduating on Monday but since this isn't a perfect world I'm constantly getting rejected for jobs i could do standing on my head with my hands tied behind my back.

Did your parents never teach you that if you've nothing productive to say then you should just shut up? Guess not eh...

rb10

1940sGal wrote: »

Is getting a credit card and paying it off right away the best option for improving a credit rating?

It's one way of improving your credit rating.

Others include:

- Making sure you are on the electoral roll.
- Remaining either in credit or within your arranged overdraft limit on your current account, and not bouncing any payments due to lack of funds
- Staying up-to-date on your mobile phone contract, if you have one.

1940sGal wrote: »

Mine is quite low but my problem is that while i want to improve it I am currently unemployed.

As others have said, it will be more difficult to get a credit card whilst you don't have an income.

Try your own bank first, and if they reject you, try a lender like Vanquis, Aqua or Capital One. They tend to take on the 'higher risk' applicants.

1940sGal wrote: »

Would it be a good option to get a card and only use it for things like petrol and food i.e small purchases that I know I can pay back at the end of the month?

Yes. When you get the card, make sure you ask the card provider to set up a direct debit from your current account for the full balance - this means you won't miss a payment.

It will then be reported to the credit reference agencies that you have spent on the card, and paid it off, which looks very good to future lenders.

Good luck in getting a job, too.

1940sGal

Thank you rb10 I really appreciate that. I do have a small income from my photographic work that I sell online but it is only small. I'll have a think though, I'm certainly not going to rush into anything.

Thanks again!