Tips To Improve Your
The day you open a bank account is a very significant day. It's
the day you take your first steps towards financial
responsibility. It's also the day that your credit report is
created and unlike your bank, your credit report will be with
you for the rest of your life.
Your credit report consists of financial data stored with a
credit reference agency. Equifax and Experian are the largest
and best known. Your credit report will affect whether you can
get loans, credit cards, mortgages and other financial products.
It will affect credit in retail outlets as well. That's why it's
very important to keep your credit report looking good. Here are
some tips to help you get a good credit score
Keep On Banking
Banking history is an important aspect of any credit report. It
shows financial responsibility. Banks check your credit too, so
if you have a cheque account, an approved overdraft, a savings
account and a credit card from your bank, lenders will increase
your credit score. What's more, the longer you stay with the
same bank, the better that portion of the credit score gets.
It can be tempting to change bank accounts to take advantage of
preferential interest rates or account incentives. The best
approach is to keep and use your original bank account, even if
you manage the bulk of your finances elsewhere.
Responsibility comes in many forms. Credit checkers score older
people more highly than young ones. They also score homeowners
more highly than tenants. People who are living at home will not
score well on this aspect of the credit file. Lenders are hoping
to see the profile of a responsible citizen. Someone who owns a
home is less likely to disappear and leave bad debt behind.
Another aspect of being responsible is being on the electoral
roll. This means that your local authority has a record of where
you live. It also makes it easier for lenders to look up your
address details. If they can't find your address, they may
hesitate before lending money.
Make sure you have a telephone at home. This is a sign that you
have successfully passed a credit check and that you have paid
your bills on time. Lenders will see this as another way of
Manage Your Credit
Another key way to improve your credit rating is to get some
credit. This can be a store card, credit card, loan or other
form of credit. Whichever you choose, the trick is to manage it
well. That means making payments on time and in full, no
defaults, no arrears and definitely no CCJs. Managing existing
credit well looks good on your credit report and makes you a
good risk for further credit.
Good credit history, responsible banking and traceability will
help to improve anyone's credit report. And if you have got bad
credit there are still many loan and credit products available
to you. If you manage those well, then you could be on your way
to a better credit report.
About the author:
Joseph Kenny writes for the Personal Loans
Store which offers information on loans and more on how to
improve your credit rating,