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How does Your Credit Rating Score?

 


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There are many processes in life that require a credit check to be carried out; loan or mortgage applications, renting a property and even applying for a mobile telephone contract. Keeping your credit rating healthy means you should not stumble upon any hurdles when it comes to having your credit history checked.

It’s important to understand how your credit rating works and what factors influence it. First and foremost, your credit history is found by using a reference agency. These agencies gather information about you from various different sources including electoral rolls and county court judgements.

If you have a reliable and stable credit history then banks are more likely to offer you credit, whether in the form of a credit card or loan. Previous debts and how effectively you managed payment of them is taken into consideration and banks use your credit history to gauge whether or not they will offer their custom to you.

It is therefore in your best interests to keep your credit rating as healthy as possible and there are several things that can help you to do so.

One easy tip is to avoid applying for several credit cards at the same time and avoid having credit checks carried out frequently. A high level of credit checks on your profile can negatively affect your rating and as you can be credit checked for many different reasons, you need to be careful not to overdo it.

Successfully managing your credit cards, loans and other household bills demonstrates to banks and lenders that you are capable of making frequent payments and can stick to the terms of payment plans.

In order to have a credit history you must have used credit of one kind or another, whether it is a credit card, store card or personal loan. If you use a credit card to make purchases and pay the balance off frequently then your credit rating will be favourable.

Another easy way to improve your credit rating is to simply check that you are on the electoral roll. If you are not on the electoral roll at the address on the credit card application there is a high probability of rejection which is an unnecessary complication. If in doubt contact your local government authority to double check you are registered and that all details are correct.

Your credit score tends to be higher if you have been at the same address for three years or more so it pays to be aware of this when applying for credit.

Shopping around to find the perfect credit card for your needs is another essential step in the process. There are various different types of credit cards available, from the airmiles duo credit card which offers airmiles for purchases made, to credit cards designed specifically for students.

Invest a little time n researching the perfect credit card for your requirements and make sure you get the best from the arrangement.

Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

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