Easy ways to improve your credit rating
Posted January 25th, 2009 As you probably know, credit card applications approvals are determined by credit ratings, those numbers have such a huge impact upon our ability to get credit. Many of us wish for better credit ratings, there’s not much reason to concern yourself with a perfect score, if your score is already excellent.
Attaining a perfect credit score is very difficult and very rare, and as such it’s not really worth bothering to try to attain, and indeed there’s no real benefit to going that extra mile from excellent to perfect, as there’s not usually much of a change in rates. Therefore if you’re already getting a fair rate on credit when you apply, there are probably many other better things to focus your energy on than improving your credit rating. This is not to say you should ignore it, but rather continue doing what you’re doing.
However for those of us who have been denied a credit card or loan due to a low credit rating, there are a couple of things you can do to improve your rating.
Be sensible with your credit use
Even if you pay off your credit balance every month, you could still have debt on the day your credit rating gets assessed. By only using small amounts of credit, you can be sure that when your rating is checked, your use of it will appear sensible. You should aim to only use about 25% of your available credit.
Minimise the number of credit applications you make
While credit card companies may flood your inbox with offers, and it may be very tempting to take advantage of these offers, you should try to avoid this practice. Those people with the best credit ratings apply for credit on average, less than twice a year. In turn, if you have an excellent credit score, you’re more likely to get the credit cards you actually want.
Keep on top of your creditors
Even if you always pay your bills on time, it won’t do your credit rating any good if your creditors don’t report it. If you do get a late payment fee charged, make sure you follow up with your creditors to make sure the fees are reversed.
Check your credit report
Checking your credit report can be a bit of a pandora’s box, but, unlike the box, it’s better to know what’s inside. The important think to do is to review the report and address any of the issues to the best of your abilities.
While we can’t guarantee that following the above advice you’ll end up with a perfect credit score, it should at least improve it over time.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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