More ways to turn bad credit into good credit

Getting active with credit and using financial services will help improve your credit rating. There are other steps that you can incorporate into your credit repair strategy which will also help.

Make sure you are on the electoral roll

In order to get good credit, it helps if you are registered to vote at your current address. If you are not eligible to vote but you are UK resident, you can send a utility bill to the credit agencies.

Demonstrate financial stability

Give your landline number as this can help with making security checks. Many lenders prefer people who are employed and own a home of their own or have lived at the same address for a number of years.

Joint and shared finances

Your credit score is not affected by marriage. However, if you share bills, your credit scores are connected and this may affect your score. If you are married and your partner has a bad credit rating, separate your finances or your credit rating will be affected.

Pay bills and debts on time

To improve your credit score you must be able to repay your debts on time, on an ongoing basis. Put together a budget you are able to stick to and live within your means.

Making sure you can pay your debts improves your overall credit history

If you are having difficulties managing your loans and debts are mounting up, contact the lender for help, they may be able freeze the interest rate. A credit score predicts your future behaviour by looking at your current behaviour. Repaying the money you owe in full and on time will build a solid credit history.

Ask for less and use it wisely

Use the minimum of your available credit and avoid over applying for new credit. Making applications once or twice every 5 or 6 months will help, but applying regularly for loans from high street lenders only to be rejected will harm your credit score. Never give false information, this could hurt your score even further.

Avoid credit repair services

Credit repair companies claim to be able to fix bad credit ratings for a fee. These companies often offer poor advice and charge a fee for information that you can get from credit reference agencies for a few pounds and credit advice that is available for free from debt counselling services.

Don’t waste your time or money.

It may take time, but it will happen

Mostly what you need is time.

If you follow these steps, as time goes by your score goes up. The time it takes to repair your credit rating will depend on your credit history. Even in the worst cases, after 6 - 7 years your bad credit history mark goes away completely. From then, you can start to explore your financial options again: loans, credit cards, mortgage, bank accounts, even a mobile phone contract will never be a problem once you have a good credit rating.

In this section

• What is a credit score

• How to start repairing your credit rating

• More steps to improve your credit rating