Monday, July 02, 2007

How To Improve Your Credit Rating In No Time At All

More and more people all over the UK now find themselves riddled with a bad credit rating. If you have a bad credit rating and want to improve it then please read on. In this article I will hopefully help you to obtain a better credit rating by explaining methods people use to improve their credit rating. Your credit rating is essential when applying for any mortgage, loan, credit card or any type of finance.

If you have a bad credit history or bad credit rating you will find it harder to obtain finance whether it a mortgage or loan etc. Any company that is willing to offer you the finance you will find that the product they are offering is not as competitive as those available to people with a clean credit history. Bad credit can be any of the following; arrears on any mortgage or loan, have CCJs, defaults, IVAs etc.

Now, I will go through the various ways you can improve your credit rating…

I am sure that if you are reading this then your are more than likely to have a mortgage, and via your mortgage is one way of improving your credit rating. In recent years some mortgage lenders have began offering what is known as a credit repair product which hence then name repairs your credit. The way it does this is; you pay a higher rate for the first couple of years and providing that you meet all of your monthly mortgage payments your credit rating will be repaired and you will then be eligible for a batter rate of interest.

Furthermore, you can also improve your credit rating using your mortgage arrangements by consolidating all your other outstanding debt by raising the money on your mortgage, by doing this you will therefore reduce your monthly mortgage payments as you will paying a lower rate of interest on your mortgage than on any other type of finance. This will hopefully enable you to meet your mortgage payments on time and in full meaning your credit rating will improve. You will also have only one loan outstanding (your mortgage) rather than many other loans and credit cards etc.

To continue, another way of improving your credit rating is; if you do have a credit card or loan or are applying for a new credit card or loan do not continuously apply with other companies in order to find the best rate because this affect your credit rating in a negative way. Every time you apply fo finance a credit check is done on your file and an imprint is left showing that someone has looked at your credit file, if there are lots of imprints on your credit file this implies that you have had or been declined for a lot of credit and therefore means less companies are likely to offer you finance in the future.

There are also various other ways to improve your credit rating, including; not changing address too often, having a home telephone number and also being on the voters' roll.

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