Credit rating improving?

diddldonna

How do I improve my credit rating? How have others done it?

Tixy

Depends what is 'wrong' with your credit rating at the moment.

What actually shows on your credit reports? have you had copies from all 3 credit reference agencies?
What credit accounts? what existing debts?
any late payments? any defaults? any CCJs etc?

diddldonna

I have only a 1 star out of 5.

I have many accounts with catalogs, loans, few credit cards (2with 0 balance). My self and husband has a big bank loan. I always pay my bills, so have none that are behind.
I have no ccjs, I havent got copies from all 3 agencies, what are they called? I only have the idaware from llyods/Tsb.

dancingfairy

O.k the 3 main agencies are experian, equifax and call credit and you can get hold of your files for 2 pounds from each. You can also sign up for a 'free' trial online with some of them but be very careful to cancel during the free trial of you will end up signing up for some subscription service.
Things to do to improve your credit rating -
1) make sure you are on the electoral role as companies check this when deciding whether to lend (apparently).
2) close any unused credit cards down - write to the companies concerned and say you want to formally close the account. This is because even if you are not using it it will still show up that you have access to how hoever many thousand pounds worth of credit so another lender is less likely to give you credit if they can see you already have access to loads.
3) make sure all accounts are up to date (and kept up to date).
4) Moving house often affects your credit file - there's not much you can do about this if you are in rented though but be aware of this.
5) Don't apply for too much credit in too short a period of time as this will start to flag up warning signs to creditors that you may be having problems - generally you don't want more than say 3 in any 6 month period I'd say if possible.
6) Was there any particular reason you wanted credit? All you can really do is make sure you credit reports are accurate and uptodate.
You might find that in the end it comes down to the banks not thinking you are the right type of customer for them, perhaps not earning enough, not being a homeowner etc etc. Also be aware that your credit 'scores' will only ever give you an indication of what lenders might think of you - clearly each bank/building society etc has their own closely guarded formula of who to lend to and what amounts so don't get too hung up on a perfect score.
Best of Luck
df

dancingfairy

It may well be just the amount of money you owe, the amount of credit you have access to versus the amount you earn.
df