Lending institutions will check your credit rating to determine your ability to pay a new loan or credit card including a loan amount or credit card increase.
Here is our top 5 list on keeping your credit rating healthy :
1. Check your credit rating once a year
Each year, you are able to request a free copy of your credit rating. Check that all loans or debts listed are yours and that your details are correct.
2. Limit your credit applications
Each time you make a credit application, it will do a credit check. As part of the credit rating report, providers are able to see how many requests you have made. If you have made too many – someone will inevitably ask, “What are you doing?”
3. Pay on Time
The simplest way to keep your credit rating is healthy is to pay your bills on time and meet your loan repayments. This ensures that when a lending institution checks your rating, you won’t flag as a risk.
4. Try direct debits
This ensures that you pay your regular bills and loan repayments on time, everytime.
5. Having trouble paying?
Let the creditor know so that they can work out a payment plan and keep you off the default list.
Call Paul today to discuss how to improve your credit rating to be able to get credit in the future.
Tags: credit ratings