Wednesday 1 July 2015

Credit rating and your family

When you and your family want to make the big life moves such as buying your first home, getting the family cars etc, you may need to borrow money in order for that to happen. It's extremely hard for couples to get on the ladder these days or even just save a good amount of money, so borrowing money is something a lot of us turn too. Your credit rating needs to be good for you to be able to do this. Credit rating is one way that banks, credit card companies and other lenders make decisions on whether or not to lend you money and a good credit score can help you get better rates when you apply for a loan or mortgage, meaning it is important to your family. 

Here are 3 steps for improving your credit rating..

 Register on the electoral roll
Something so simple could give you a bad credit rating as credit reference agencies need to know you are who you say you are in order to lend you money. Your presence on the electoral roll is one of the key factors in determining your identity. 

Pay back new credit successfully
If you have a bad rating, you want to get a credit card to show you can pay it back on time, which will improv your credit rating. You will more than likely only get a credit card with higher interest rates but it will help in the long run if you keep the payments up to date. Then when your score is up, you can go for regular credit cards such as the ones from TSB

Apply for credit sparingly
Don't just apply for lots of credit cards hoping one will be accepted.. this is seen as a negative more by lenders which will not improve your rating at all. Only apply for the most suitable cards and no more than 3. 

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*In collaboration with TSB 

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