Thursday, August 9, 2012

Managing Your Credit Rating

A good credit rating is vital for successfully applying to borrow money. Whether you're applying for something as huge as a mortgage, or something as relatively small as a credit card, your credit rating can define whether you get the best rate possible, or even whether you get a good deal at all.
 Credit ratings are built around historical instances whether you've borrowed money, but just because they're based on what you've done in the past doesn't mean that you can't change your rating in the present.
The first step is, of course, to know what your current rating is, and that's where a company like Experian step in. Simply type 'My Credit Rating' into a search engine and follow the links and you'll be able to find out exactly how you're doing in just a few minutes.
The next step is to understand how credit ratings work. They are based on your historical transactions, but the most common reason for a negative rating is inconsistent information on your record. For that reason it's important that you check each heading on your credit rating and make sure that every single item has the correct (and consistent) name and address details.
Once this is done, you can improve the reliability of your information by making sure you're on the electoral roll. This provides proof that you are who you say you are and that you live where you say you do and, accordingly, helps boost your ratings. Visit the Direct Gov website to get started.
 If you're already on the electoral roll, you need to go back through every individual record on your credit rating and make sure that any unused, or defunct, credit lines are properly cancelled. Having lots of credit lines isn't, in itself, a bad sign, but if you have old records that are still open, they're more likely to contain inaccurate information which could cause problems in the not-too-distant future.
Should you find anything out of place, make sure that you call up the credit agency straight away to get it fixed up. Usually this is all the effort you'll need to amend the record, but sometimes you may need to talk directly to the lender, particularly in a situation where you've made late payments or have a default against your name.
  Lenders are always looking for good borrowers, and your credit rating is your best proof of whether you're a good borrower or not. Be proactive, make sure that you check your rating at least once a year and you know what's written on it, particularly the negative aspects, it'll only take a couple of hours of your time and good translate into serious savings in the form of better deals, and quicker applications.


2 comments:

  1. Credit rating is a very valuable thing and all credit users are definitely managing their credit ratings, but all are not understand or unknown about that and me also the same, that’s why many credit card users are not managing their ratings. I think after reading this blog many people are definitely done their work in perfect way.

    ReplyDelete
  2. I agree with the other commenter that credit rating is a very valuable thing. Same as in mortgage refinance Massachusetts in terms of refinance loans, they have benefits of refinancing such as low monthly payment and reduce your interest rate to keep up with the monthly payment of the borrower.

    ReplyDelete