Building up your credit score is extremely important in the long term. Banks and companies will check your credit history whenever you finance something such as a phone plan or loan, and they’ll only offer their services to someone who has a good history of sticking to their end of the bargain.
If you need to borrow money it is best to turn to reputable companies or high street banks rather than doorstep lenders or loan agencies. This way any lending is documented and payments that are made on time go towards a good credit rating.
One such company is Polar Credit who offer a credit line for responsible borrowers. It helps to lower cost credit and not have to pay the high fees associated with payday loans etc. Thus helping in turn to rebuild a good credit rating.
Polar Credit is a direct lender which offers credit to people looking to borrow money. They offer access to small sums of money (from £25) so that we can borrow exactly what we need. We only get charged interest on exactly what we borrow too. That means if we are approved for say £2000 but we only dip in and borrow £100, interest is only charged on that £100 and not the total credit available. The great thing is the interest rate is reduced the longer you keep the account too.
If your credit rating isn’t in a good shape, then there are ways to build it up to an acceptable level so that banks and businesses will lend you money and offer services. The best way to check your credit rating is with an online service. They usually operate as subscription services, and they can offer you advice in addition to letting you know what your credit rating currently sits at.
What Affects My Credit Rating?
Your credit rating can be negatively affected by things such as high levels of debt or missed monthly payments on anything such as your credit cards or bills. Many services, such as phone plans and utility like gas and electricity, don’t require you to have a good credit rating and are good ways to build it.
Not using your credit card is also seen as a negative to your credit score. After all, why would you sign up to borrow money if you aren’t actually borrowing money? Regular use of your credit card and being on time with payments to your rent, loan, or any recurring costs is a sure-fire way to get a good start. You can also take out home owner loans if you’re financially stable. They can prove to be big boosts in your credit rating if you manage to maintain repaying it back, and it’s a great way to get a big injection of cash for any expensive projects you want to carry out.
What Are the Short-Term Solutions to Improving My Credit?
If you’re eager to get a quick boost to your credit score, there are a few actions you can take.
First of all, cancel any unused cards and services that you don’t want to pay for. As mentioned before, an unused credit card is pointless and only serves to lower your credit rating.
Next, make sure you’re on the electoral register and you’re able to vote in your country. If you’re not eligible to vote, then loaners will find it hard to track you down and prove who you are.
What About the Long-Term?
The most straightforward and hassle-free way to improve your credit rating is to always pay on time. Make sure you pay your bills on time, make sure you have no outstanding credit card bills, and always have cash in case of an emergency. Loaners want to see that you’re financially stable, so do your best to never be late with payments.
You can also take out loans and borrow money from a direct lender whenever you are financially stable. As long as you can safely pay back the money, you should have no trouble with debt and it’ll give you a nice boost to your credit score. Just make sure to always calculate how much you have to pay back, and if you need the credit score boost or not. If you don’t plan to take out a mortgage or make use of your credit, then don’t force yourself to try and improve it.
