Improve your Credit Rating

Building a good credit history can repair past problems and a bad credit rating. If you can show an improving and stable credit history it will be easier to get a bad credit mortgage. Here are 10 ways on how to improve your credit rating:

• Electoral roll; Get on it!!!


• Credit Application; lots of credit searches in a short space of time hurts your credit rating score; including car insurance, mobile phones and others, as all can leave searches on your file. So be careful of applying for loads of credit in a short period of time; especially if you keep getting refused credit.
• Credit Rejection - if you're rejected credit once, immediately check the files are correct. Don’t go to the next lender and get rejected again this will have a downward spiral effect on your credit rating. Ask the lender which credit reference agency it used to assess your info, and then check it.
• Get a 'quotation search' not a 'credit search'. Ask the lender to do a ‘quotation search' and not a ‘credit search'. This means the enquiry won't have a negative impact on your credit score if it is rejected
• Stability - evidence of stability is good. Home owners rather than renters, and those who are employed rather than self-employed, tend to score more highly.
• Bills - Home phones and mobile phones on direct debt and not "pay as you go" will build your credit score. So will having utility bills in your name.
• History - being with the same employer, bank and current address for a while all help too - 3 years is normally good.
• Cancel unused credit cards, debts and accounts. Access to too much credit, even if it isn't used, can be a problem.
• Credit cards - If you've no credit history it's more difficult for lenders to score you and you're more likely to be rejected. If you have no credit cards apply for one, it builds your credit history. Use it for 6 months to a year, spending a little every month but strictly repay it in full each month, so there's no interest cost.
• Keep up with your payments - make sure you keep up with all your payments and never over stretch yourself financially.

Once you have built a good credit rating it will become much easier to apply for a Bad Credit Mortgage. We have expert Bad Credit Mortgage Brokers working to find the best deals for you. So if you would like to find out if we can help you fill in our Bad Credit Mortgage Application form.