7
Feb
2010
Tips You Can Do To Maintain A Good Credit Rating
In the UK, millions of individuals incessantly used credit cards for things they both need and want but that all considerably changed in the advent of the present economic slump. A lot of these people were also randomly presented credit cards by several banks even though they were not assessed for vital financial information such as payment habits. In turn, consumers have become passive and complacent with how they use their credit cards.
With banks and lenders now more stricter, they have enforced tighter rules on how they grant loans and credit to consumers. As a result, taking out much needed loans has become more tricky for a lot of people especially when it comes to mortgage, car loans, etc.
In order to keep a tidy credit rating as much as possible, you should be alert with your records, receipts and documents that have to do with your loans and credit card.
Keeping track of your credit record is the first major aspect whether lenders should grant you a loan or not. Your credit record will be the measuring stick lenders will look at.
Your credit report is a history of all the things you loaned, where you borrowed, how much and how you repaid it, so you need to check it frequently and make certain that each and every detail is correct, up to date, and in accordance with your payments.
The most crucial thing to look out for on your record are the balances that you have already paid but are still indicated as unpaid. An error such as this should be cleared up immediately as it will not only be an additional uncalled for expense for you, it will also negatively upset your credit rating.
The errors on some basic details such as your name, address, telephone number, or anything else that is contradictory, should also be made known to the lender.
If you are moving to a new house, make sure you cancel your contract or change the information with your electric, water, and other utility bills. This is to make sure that the next residents (if any) will not be able to charge these utility costs on your name. You should also redirect your mail to your new address to prevent interception of your mails by other people that can be used to steal your identity.
If you share an account with a better half (e.g. live-in partner, spouse, etc.) be sure to cancel the account if both of you are to split up. If you are always on time with your payments and your partner isn’t, your credit record could get affected by it. This is what is known as a financial association.
Should you ever get to this point, you should have your joint account canceled and establish your own personal account. If the joint account still has a certain quantity of debt, you or your partner should shoulder that debt. The two of you can still pay for the debt together but it should be integrated to only a single individual account.
Lastly, erase the financial association from your credit report by telling a decent credit reference agency.
If you have never taken out a loan, and it so happens that you are not a newly graduate who’s just starting up, you could have a tough time taking out a credit card or other forms of loan.
This is because you don’t have a track record to show lenders that you are a borrower they can rely on. If you want to start a reliable credit rating, you can begin by applying for a credit-building card and use it to purchase things you know you can afford and pay on time and maintain this account for at least 12 months.