How can I improve my credit rating?

Question

I've had 2 defaults on late loan payments last year. Also, i got fined by the magistrate for not paying a metro (train fare) penalty ticket which i've been told can affect my credit rating. I've paid off my credit card and loan now, but acording to moneysupermarket.com my rating 'needs improvement'. How do i do this? Do I just have to wait till it gets better?

Answer 1

These are the best and fast way to improve your score...I use and give these tips to my customers where I work in order to get loans, mortgages, etc approved...12 months is what it takes

Answer 2

By implementing these tips you could save hundred of dollars in interest in the long run and put cash back in your pocket in the short term.

1) Avoid using cash and borrowing from family for all your purchases. In the eyes of creditors no credit history is the same as a bad credit history. You may get away with paying cash for your car but when you buy your first home it will come back to haunt you. Even if you can afford to borrow or pay cash try opening an account to buy your furniture, automobiles, or home improvements. A diverse credit background will help with your credit score.

2) Your credit report tells all. Do not lie or stretch the truth to lenders, banks, or employers. They will easily catch you and the consequences are not worth it.

3) Do not cancel credit card accounts to improve your credit. The intended affect may be the opposite of what you expect. You can hurt your credit by canceling your credit cards; especially if you have a long history with the account. Losing a ten or twenty year credit history isn't worth it. If you absolutely must stop using a card, try shredding it. An open account that doesn't have a balance looks far better then no credit account at all.

4) Starting early is always better when establishing credit history. Getting a teenager or college student a credit card is a great way to get their history started. For those who don't trust their child's judgment yet there are many prepaid cards that report to credit bureaus. Read more from: http://www.credit-card-gallery.com/article/136,Seven_Must_Know_Credit_Tips

Answer 3

Credit companies keep details of your financies on file for 6 years, when you apply for further credit the company you are dealing with will access those files and make a decision, you will find it very difficult to get credit for that period of time but if you have any credit running at the moment you are wise to keep the payments on time all the time, this is applies to UK only.

Answer 4

Worse thing you can do is have late payments, defaults and collection accounts on your credit report.

Best way for you to improve your credit is to start paying all your bills on time. About 2 years of consistent, on time payment should do it.

Answer 5

Unfortunately , credit agencies use the same pool of information, and any default in payment of your creditors will affect your credit worthiness. I believe this is wrong, but this is the system that bank and other financial institution use.

Answer 6

Stop spending