Tips to Improving your credit rating

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Perhaps, ignorance has largely contributed to the ever increasing number of people with a poor credit rating. The thinking among most UK citizens with a poor credit rating is that improving ones credit rating can be done in a few weeks. Some individuals fail to pay their mortgage on purpose or default on paying bills on time under the false illusion that when the time is right, circumventing the system will be a walk in the park. Well, here is the news flash. Improving your credit score is not the same as revving your race car where you will feel the results instantly.

In fact, your credit score can be equated to your driving record where your past actions or behavior override your present actions. If you have in the past engaged in driving while under the influence of alcohol, the blot will remain on your record irrespective of whether you have recently turned a new leaf. In light of this, you are probably on this article because you are seeking for ways in which you can improve your credit score. If that’s the case, here are a number of ways in which you can improve your credit rating.

Pay bills on time

If in the past you had the penchant for paying your bills late, it might be time you started paying bills on time if you are keen on improving your credit score. Defaults negatively influence your credit score and therefore you need to make efforts to ensure that you pay all your bills on time to avoid a situation where your credit score worsens because of it.

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Eliminate your credit card balances

One sure way of ensuring that you improve your credit score is by ensuring that you eliminate balances on all your credit cards. It is imperative to note that your credit score is also determined by the amount of balances on your credit cards and therefore one recommended way of improving your credit rating is elimination of any existing balances. Endeavor to pay off your credit balances in good time and you can be assured that this will have a positive impact on your credit report.

Do not seek to expunge good old debt from your credit report record

Have you taken a mortgage or car loan in the past and paid as was agreed? If yes, why are you seeking to have it expunged from your record? Good old debt is the kind of debt where you met your obligations without any defaults and according to agreement. What happens is that most people after clearing their car loan or mortgage pick up their mobile phones and wish to have that debt expunged from their record. Well, that is a bad move. A good old debt is an indication that you are capable of meeting your monthly obligations. In fact, expunging good old debt is akin to getting straight A’s in your high school years and then trying to expunge the same from your records 20 years after.

Don’t be obsessed

In essence, if you are looking to apply for credit in the foreseeable future, you need to be less concerned with your credit report but rather focus on paying your bills on time as well as using your credit cards responsibly. This smart spending behaviors will obviously be reflected on your credit report and will go a long way in improving your credit score.