Ten No Hassle Ways To Improve Your Credit Record...

...so that you get a stomping credit score that lenders fight for

If your existing car is running out of steam and it’s time to get a new one, you may be wondering how on earth you are going to manage it. Due to the current economic climate, lenders are becoming increasingly reluctant to lend anyone any money. And if your credit score is letting you down, you might think there is no point in applying at all.

But even if you don’t have a good record, there are ways to improve your credit score. You just need to know how to do it.

And that’s what we’re about to reveal to you. If you want to get that new car, make sure you follow the ten steps outlined below first. If you do, you will increase your chances of bagging that loan.

Make sure you are registered to vote.

You might be wondering how this is related to getting a loan, but the truth is that credit companies will check the electoral roll to see if your name is on there. And if it isn’t – whatever the reason for that might be - your chances of getting that loan just took a nosedive. The good news is that registering is easy. Just visit www.aboutmyvote.co.uk and follow the directions given.

Make sure your credit report is correct.

Just because your credit report is an official document that can make or break your chances of getting credit, it doesn’t mean that it’s automatically correct. Mistakes do happen, which is why it’s a good idea that you check to see it’s all up to date and contains the right information. One of the ways to improve your credit score is simply by asking for your credit report from the two big agencies in the UK, Experian and Equifax. Requesting your details will cost you £2 – and that is definitely money well spent. You can visit their sites at www.experian.co.uk and www.equifax.co.uk.

Get rid of any credit cards you don’t use any more.

Remember a while back (when it was easier to get credit) we’d all get a no interest credit card and then bounce the balance across to another one when the interest free period ran out? How many of those old credit cards did you cancel after you moved the balance? The chances are that like most of us, you put those cards in a drawer and forgot about them. But if you want to find ways to improve your credit score, make sure you get them out and cancel the ones you don’t need. Having too many will look like bad news – especially when you add up the available card balances.

Be honest.

Whenever you fill out an application form for credit, it’s vital that you are honest about your circumstances. If you’re not, it can damage your standing. Not only can the lenders discover the lie, it can also make it very difficult to get credit in the future. So don’t be tempted.

Make sure your mortgage is top of the list of bills to pay.

We all encounter difficulties paying bills now and again. But if you want to find ways to improve your credit score you should always make sure your mortgage gets paid before everything else. This is a biggie – missing your mortgage payment will send up red flags as far as your credit report is concerned. Focus on paying this every single month before everything else.

Be responsible with loans.

If lenders see that you can handle credit, they are much more likely to give you more. So if you don’t currently have a credit card, consider taking one out with a low balance on it. Use it each week and make sure you have the money to pay off the balance when it falls due. Do this for a few months and you will find it far easier to successfully apply for a loan to buy that car.

Keep up to date with your credit report.

Many people don’t bother to check their credit report at all. But even the ones that do don’t realise that it shouldn’t be a one off event. Remember that it only costs you £2 to get a copy from Equifax or Experian, so make sure you check it every couple of months. This will enable you to minimise the effects of any errors that may be made, and keep your report on track.

Keep on top of what you owe.

If you already have debts on a credit card or a loan, then one of the ways to improve your credit score is simply to keep up with those repayments. If the credit companies can see that you are responsible with money and you repay it promptly and when asked, then they are far more likely to lend you more. And if you have some extra cash in hand, think about paying off a lump sum – or even the whole balance. Keep this in mind and that new car may be closer than you think.

Make sure your identity is safe.

One of the ways to improve your credit score is simply to make sure that no one else has been ruining your chances for you. You’ll no doubt have heard of identity fraud, and if you are unlucky enough to become a victim it can have a real effect on your credit record. This is another reason why you should check it often; it can flag problems you may not even know about. And make sure that if you are a victim, you let the credit agencies know the facts. You don’t want someone else’s greed causing you problems in the future.

Don’t let old relationships linger in your credit report.

Many people don’t realise that if they have a joint account or another financial product with another person, they are tied to them in the eyes of the credit agencies. If you have a good record and they have a bad one, it can drag you down. That means it’s even more important to sever that bond if you should split up with that person. If this happens, order a copy of your credit report and make sure that they are aware of the situation. You can have any changes made through a website called CreditExpert, which can be found at www.creditexpert.co.uk. And as you will see when you visit the site, you can benefit from a free trial and a free copy of your credit report as well.

If you follow these ten steps then you will have a much stronger and healthier credit report. Some of them take time to feel the benefits from, but they are all ways to improve your credit score.

But it’s no good going through all these steps if you don’t keep up the good work. Your credit score is able to go down as well as up, so make sure you practise good habits and pay back anything you do borrow on time each month. That is one of the best ways to improve your credit score that there is.