How to rebuilt your credit rating

If you've had problems with repayments in the past, it's likely that your credit rating will be affected. There are many things that you can do to rebuild it, but it's usually a slow process, so it takes some patience. The main thing is to demonstrate that you can be a responsible borrower, evidence of this will be registered on your credit file.

Firstly, ensure that you are registered as a voter. Not for any particular political reasons, but most credit reference systems check the Electoral Voters' Roll to see if you are registered at your current address. This will always help you build a strong foundation to your credit rating.

The next step, and this goes a little without saying, but it's important is to make sure that you repay your debts on time. This can be done in two ways. Ask the lender to set up a direct debit for your loans and request that a minimum balance payment is taken by direct debit from any credit and store cards. This prevents you from forgetting and maintains a strong repayment history. Also, if you have to make payments not covered by a direct debit mandate, set up a standing order from your bank. Always set these up to make the payment close to your wages or salary payment date so that you know that you have the money available to you.

Futhermore, contact the main credit reference agencies and ask for a copy of any information that they are currently holding on you. This will allow you to ensure that no mistakes are falsely lowering your credit abilities.