Practical tips to help you improve your credit rating and avoid expensive high interest loans
Is your credit rating holding you back? Find out 3 achievable ways to improve your credit rating in the article below.
Every time you apply for a loan, the lender will put a mark on your credit file that they have credit searched you (to see if you are suitable to lend too).
One or two marks are fine, but it does not look good if you have lots of credit search marks and this will also actually reduce your credit score.
So where possible stop applying for credit, and make sure before you apply that you are likely to be accepted (which can be achieved by ensuring the lender only does a ‘soft search’).
For more on this subject, please check out the excellent article – Will a Credit Card Application Hurt My Credit Score?
If you have an existing loan with a lender, and there are missed payments, it is possible to get that lender to remove the missed payments from your file.
You have to negotiate with the lender and say if they remove the missed payments marks from your credit file you will pay back £x.
The downside to this, unfortunately, is that you do need to have the money to pay back some or all the outstanding loan.
Find out more in this great article by Which? titled, ‘I can’t pay back my payday loan, what can I do?‘
These types of card are specifically designed to help you to re-build your credit file.
There will typically be a small monthly payment to make a month (£5 per month), but this is marked on your file and will start to improve it.
Though remember that your credit file goes back 6 years, so the sooner you can take action to improve things the better.
Prepaid cards come with several pros and cons, but they could be the best way of spending for you. Here is how to work out if you should get a prepaid card.
To cover all bases, paying a visit to the Checkmyfile website will allow you to view the UK’s only multi-agency credit report.
You can try checkmyfile free for 30 days, then for just £14.99 a month after, which you can cancel online at any time.
The details contained within your report will provide an insight into the likelihood of your ability to secure a standard personal loan.
If you have a less than perfect credit rating but are looking for a loan, then we do offer some great options:
Or just apply, and you will see the loans that you qualify for (zero impact on your credit score)