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finance: Credit Report Checks

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Credit Reports & Checks

Ways To Improve The Average Credit Score

A good credit rating is very important since it can affect a lot of decisions that you have to take in your life. Credit ratings can affect your chances of employment, buying a home or getting a loan. You should therefore be very careful what you do in order to improve and maintain your credit rating. Maintaining a credit rating is easier than trying to improve it once it has been reduced since debt can remain on your credit history for a long time, even after you repaid the loan and the debt is canceled. For those who have an average or poor credit rating the following are ways to help improve your score.

Request Free Credit Reports:

Ask the credit bureau to provide you with free credit reports on a regular basis. Check them thoroughly for errors. Study the criteria, described in the report, used to calculate your credit score.Compare your report with your payment receipts to make sure all the payments are reported correctly and the dates correspond. In cases of discrepancies, you must bring them to the attention of the credit bureau immediately. Requesting personal credit reports and disputing any matters contained therein will not affect your credit score.

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Company Cost Per Month Free Trial Unlimited Access
Give Me Credit £6.95 30 Days Yes
Equifax £9.95 30 Days Yes
Check My File £14.99 30 Days Yes
Experian £14.99 30 Days Yes

Pay Back Loans on Time:

As long as your loans stay on your credit report unpaid, there is little you can do to improve your credit score. It is very important to make repayments of your loan on time since defaulting is one of the major reasons for a low credit score. To ensure that you don’t default, you should adopt the following:Visit your loan manager and get your loan consolidated and select a repayment plan which you can stick to. Share your financial situation with your manager and seek his advice.Find ways to make your loan repayments on time. If you lack the finances, look for ways to generate more income which can be used for loan repayment purposes. Devise a method of reminders to ensure you do not miss a repayment deadline.

Pay Your Revolving Loans First:

Revolving loans such as your overdrafts and credit card payments should be given priority when it comes to loan repayment. These loans have a higher impact on credit ratings than the long-term direct loans. If you find it difficult to pay back your credit card balance which can attract very high interest, you can transfer your balance to a new credit card that offers a much lower and even 0% interest rate, in some cases, for an initial period. This will give only temporary relief.

Avoid Further Loan Accumulation:

There are several reasons why you should avoid increasing debt levels with an already poor credit score. Applying for a new loan will put your low credit score in the spotlight since the bank or lending agency will make a credit check which can further reduce your credit score. With a poor credit rating, it is highly unlikely that your loan would be approved and you will only end up with an even poorer rating.Even if your loan is approved, you will probably be offered very unattractive terms with high interest rates which will be difficult to repay. The situation created is the dreaded debt spiral. If you have a poor credit rating, it is not a good time to apply for a loan.