20 No-Fuss Ways To Build your Credit Rating: [INFOGRAPHIC]

You credit rating is vital these days. From renting properties, buying properties, opening bank accounts, applying for jobs, these days we’re credit checked for many aspects of our lives and there are a few simple, hassle free ways to improve your credit rating.

You’ve probably heard the phrase, “you can’t get credit without having credit”, and to a certain degree it’s right.

I struggled for years to obtain credit as i had no previous credit history.

I thought by being sensible all my life, never borrowing or overstretching, would make me a safe bet when it came to applying for a mortgage.

How wrong I was!

Eventually after a good 18 months doing everything humanly possible to improve my credit rating, including using Creditbuilder™ through icount Money, I was accepted for a high interest credit card by Marbles.

Now this is the type of card that you need to clear the balance monthly as the interest is extortionate at 34.7%APR, but it did give me a footprint on my credit file and eventually I was accepted for another with Nationwide.

I use them sporadically throughout the month and clear the balance in full every payday to show I am a sensible borrower.

If I can do it so can you and here is how:

As you can see, there are numerous things you can do to help improve your credit rating. The fact that 79% of credit reports contain mistakes says it all and checking yours for yours for any should be paramount in your thoughts. The slightest mistake will flag up and can deter a creditor from offering you a credit agreement as you may appear as an unsafe bet, remember credit is based on risk, the better the bet you appear, the more likely you are to be accepted. Being able to demonstrate you are a sensible borrower is extremely important. By clearing your outstanding balance monthly you show a creditor that you are managing your money properly and not overstretching beyond you means. Having a few credit accounts and clearing the balance regularly is looked on favourably by lenders, however be sure not to open too many accounts at once or it can have a negative impact o your credit rating.

As you can see, there are numerous things you can do to help improve your credit rating.

The fact that 79% of credit reports contain mistakes says it all and checking yours for yours for any should be paramount in your thoughts.

The slightest mistake will flag up and can deter a creditor from offering you a credit agreement as you may appear as an unsafe bet, remember credit is based on risk, the better the bet you appear, the more likely you are to be accepted.

Being able to demonstrate you are a sensible borrower is extremely important.

By clearing your outstanding balance monthly you show a creditor that you are managing your money properly and not overstretching beyond you means.

Having a few credit accounts and clearing the balance regularly is looked on favourably by lenders, however be sure not to open too many accounts at once or it can have a negative impact o your credit rating.

If, like me last year, you have no credit history, or you have had a poor credit history before, you may want to think about using a facility such as Creditbuilder™ with ICOUNT money, that could improve your credit score.

It can allow you (subject to terms) to look at the possibility of lending you the pre-paid account by way of a small consumer credit loan.

At the end of the nominated period, usually 12 months, repayment of the small loan will show up as an honoured credit agreement on your credit file, meaning you could improve your credit rating without the fear of racking up any large debt or paying interest rates which could lead to struggling to pay off the balance.

As with any credit agreement though, bad credit behaviour, as well as good behaviour, is reported to the credit reference agencies.

There are plenty of things you can do to improve your credit score and with the many checks we now need to get through everyday life can you afford not to start improving yours?

This post was written in conjunction with icount Money. I recommend Creditbuilder™ as a sensible way to help improve your credit rating because I used it myself. I haven’t received a fee for writing this blog. If you choose to use Creditbuilder™ icount Money may pay me a small commission.

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David Jack Taylor is the founder and editor of the Thinking Thrifty blog. An award winning personal finance and lifestyle blogger, he shows how it is possible to live extremely well for less.
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16 thoughts on “20 No-Fuss Ways To Build your Credit Rating: [INFOGRAPHIC]

  1. Thank you for this infographic it is very helpful. When I was building my credit years ago, I made the mistake of closing accounts I no longer used. I thought I was doing the right thing, but my credit took a ding. Thankfully I was still able to buy a house later, but my interest rate might have been higher because of some of the mistakes I made.

    1. Hi Shanetta thanks for taking the time to read and comment. It would help if we were taught about it younger. We go into the world of finance with little knowledge of how it works, then we’re just supposed to manage it blind. I would have had more use for financial education rather than some of the stuff I was taught in maths that I’ll never need as long as i live!

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