Fixing your Credit Rating
Many of us struggle to keep track of our credit ratings and can find it difficult to secure low interest credit cards thanks to a few black marks in our credit history. Debt issues and bad credit ratings affect millions of people worldwide and it is a lot easier than you might think to inadvertently find yourself with black marks you didn’t even know you had. A late bill here or a charge that you weren’t even aware of can be used against your credit rating and can make it harder for you to borrow. Unfortunately many of us aren’t even aware of these issues until we are rejected by a credit card company or other creditor. So with that in mind we decided to look at some ways to fix your credit rating problems and how to secure a good credit card once you have a clear record.
Fixing your credit rating
A bad credit rating can come from a number of sources but is most commonly associated with missed or late payments. The first thing you should do is check your credit rating online to determine what black marks you have and to identify their sources. If you want to fix your credit rating then you need to make sure you don’t still have any debt outstanding. Many people don’t realise they owe payments until they check their credit rating so it is a good idea to make sure you are debt free when you apply for new lines of credit. So get a credit rating report and go through it to ensure that none of your debts are still outstanding; if they are then pay them off instantly to help improve your credit rating. Secondly if you have a black mark from company you still have a contract with (phone, internet etc.) then you can contact them directly and ask for your black mark to be removed – this won’t always happen but it can be a real help.
However, this alone will not help fix your credit rating so you will have to take proactive steps to get yourself back on the right track. Simply not using credit won’t actually help your credit rating so you need to build a track record of meeting payments and using credit efficiently. One of the best ways to do this is with credit cards as they allow you to build a track record of good debt. If your credit rating is very bad then you’ll have to stick to a credit card with high interest rates specifically designed for people with a very bad credit rating. If you can find a low interest credit card though you can achieve the same effect- basically you want to pay at least one bill a month using the credit card and ensure that you have a direct payment set up from your bank to pay for it each month – thereby building a good credit rating and avoiding debt.
How to secure a good credit card
Once you’ve taken these steps you should easily be able to attract very good credit card offers and you will have a good track record of meeting your debt obligations. When looking at credit cards ensure you choose the lowest interest rates possible and make sure you take advantage of bonuses. Always read the fine print to avoid hidden charges and ideally always make sure your outstanding payments are made by direct debit each month.