What is Credit Rating
Credit ratings are used by lenders to understand more about the credit history of an applicant. Your credit rating changes over time as your financial circumstances change. At Cash Converters, we use this credit rating information as part of the decision making process when you apply for a Personal Loan.
So how to improve your credit rating
- Aim to always pay your bills, rent and loan repayments on time. Even paying your gas or electricity bill late can affect your credit rating.
- Consolidate debt wherever possible including credit cards.
- Lower credit card limits.
- Limit the number of enquiries on your credit file. Simultaneously applying for loans with multiple providers can have a large impact on your credit rating if they each do a credit check.
- Equally, it’s good to have some activity on your credit file to show a track record of paying on time.
- If you are experiencing financial difficulties, call your credit provider and negotiate a payment plan arrangement with them. This can prevent a default being listed on your credit file.
- Identify any areas of concern on your credit file and aim to fix these. There may be an outstanding debt you are unaware of or there may be errors on your file. Once you have identified these, you can either have the errors corrected by contacting the ratings agency or the credit provider or you can aim to settle any outstanding debts.