How to Get 10/10 on Your Credit Rating

Lenders are much more stringent about the type of customers they lend to following the economic downturn and housing crisis of the late 2000s. Your credit rating is one of the factors that determine whether you qualify for a home, auto loan or credit card account. It also impacts your eligibility for employment at some companies. It is vital to keep an unblemished credit record to get approved for a loan, because even the smallest of mistakes will cost you.

Instructions

1

Obtain your credit report (see Resources). You can get your credit report once a year for free, or multiple times by paying a small fee. Check to be sure there no errors. If errors exist, contact the credit agencies to have them corrected.

2

Ensure you are on the electoral roll. Credit reference agencies obtain information from the electoral roll. It is vital to be listed; otherwise, it will appear as though you are starting fresh without any credit or as if you do not exist at all.

3

Establish a credit record by borrowing money and making timely payments to pay your balance on time and quickly. Companies want to know that individuals can handle debt. Opening an account with a mobile company or another provider with less stringent criteria can be a starting point to establishing a good credit record.

4

Check all bank statements. Set up standing orders and direct debits to automatically make payments for you, so all payments are on time and consistent.

5

Cancel and close any credit card accounts that are no longer being used and overdrafts that are no longer required. To be sure an account has been closed, write the company an actual notice of cancelation. Cutting up the credit card is not enough.

6

Do not apply for multiple credit applications. Each time a company checks the credit record it leaves a footprint, and too many footprints will most likely give companies the wrong impression of you and affect your score negatively.

7

Use any extra cash to pay off bills, loans and other credit arrangements so you are debt free or as close to being debt free as possible. Showing that you can handle debt responsibly will be taken as a positive sign by the financial organizations.

8

Ensure all arrears are up to date, and make sure there is a notice of correction put on the record. Nothing will get you a higher interest rate and prevent you from obtaining credit faster than missed payments. Pay off any arrears, and if there is a good reason for missing the payment, submit a notice of correction. Make sure all accounts that have been settled show on the credit record. In case of a County Court Judgment, a CCJ, a Certificate of Satisfaction by the county court will most likely need to be sent to credit reface agencies.