How to Repair Your Credit Rating

If your credit rating could look a little better then you may be wondering just how you can improve it.

As your credit score seriously affects the chances of you getting credit, it is important to ensure that you have as good a credit history as possible. The good news is, there are several ways in which you can improve your credit score.


Number One - Pay Off Any Existing Debt
The easiest way to improve your credit score is by paying off any debt that you currently owe. In the same way that a missed payment gets recorded in your credit score, a payment on time will also be recorded. So if you have any existing debts then it would be a good idea to try to pay them off as soon as possible.

You should also always pay more than the minimum repayment. By paying the minimum repayment it might still improve your credit score, but you will end up paying more interest as the time drags on. By paying more than the minimum your credit score will still improve and you will end up paying back less too.

If you have credit card debts and you are struggling to pay off the balance each month then why not consider taking out a 0% balance transfer card? That way you can transfer your balance onto the card and you will not be charged any interest for a certain period of time. That gives you chance to pay off the debt interest free.

Number Two - Get a Credit Card
It may seem a little silly telling you to get a credit card to improve your credit rating. After all, aren't you in this mess because you have been using your existing cards a little too much? A lot of debt these days is caused by credit cards but you can also use them to improve your credit rating too.

To do this you need to spend just a little on the card and then pay it off in full at the end of the month. That way, you will have paid back everything and that will be recorded on your credit report. Over time this will greatly improve your credit score and you will end up with good credit again.

The above are the main two ways in which to improve your credit rating. The main idea is to ensure that you do not owe anything to anybody and that you can prove that you can pay off any money that you do borrow. So by following both tips you will essentially end up with an excellent credit report.
Overall your credit score is important to creditors and it will affect the chances of you being accepted for any future credit. Mortgages , loans and credit card applications will all be determined upon your credit score. The better the score, the more likely you are to be accepted and the lower the interest rate will be.

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