These days your credit score can be an important factor in getting you finance, loans and tenancy agreements on rented accommodation as well as mortgages. It is estimated that in the UK that most people have a score that is below the average and with the current economic issues that we have had to deal with in the last two years you can see why many people’s credit scores have dropped with people losing their jobs and not being able to make repayments on bills, loans and mortgages, it all goes against your score.

In 2009 we saw many lending companies tighten their policies on accepting below average cases and in many circumstances those that managed to get finance would see a huge APR rate come with it.

So in these tough times what can we do to help improve our credit rating without being caught up in debt?

There are many ways that you can help yourself out and below are the primary examples used when bumping up your credit score:

  1. The most likely case is to apply for a low limit credit card that you can use each month taking a small amount, and repaying in full at the end of the month. This shows that you can manage your finances and keep on top of repayments. Even if the credit limit is just £100 and you use £10 a month off it, it all helps build trust.
  2. The prepay credit card from APS cashplus is one of a kind that allows you to add the creditbuilder feature to it. The creditbuilder is a 12 month loan agreement where the card holder pays £4.95 per month, if you keep up with this small payment each month your on the right tracks to successfully improving your credit score as APS report the information to the credit agencies.
  3. Taking out a small loan is another way but you will most likely find high APR deals. If you feel that you could benefit from a loan of £1,000 for driving tuition, debt consolidation, household repairs or any other important factors then taking a 12 month deal can benefit you greatly and show you can be responsible.
  4. If you are looking to improve your credit report then please take heed and steer clear of applying for too many loans in a short space of time as this can seriously affect your credit rating and ruin any hard work you have done in building up your score.

The guidelines for the credit score are as follows:

580 and under = Very Poor

581 – 619 = Poor

620 – 679 = Fair

680 – 719 = Good

720 and above = Excellent


which one are you?

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