4 Sure-Fire Methods to Enhance Your Credit Rating

Article Written By: Lindsay Phillips

1 - Look into prepaid credit cards

At the moment APS are offering a credit builder add-on to their well-liked prepaid gold card. The good thing about this APS CashPlus card is that you canandrsquo;t get into arrears, so for anyone that has the lure to constantly spend then this card will keep you in check. Fundamentally, you only add to the prepaid card what you can afford to, and then pay under andpound;5 a month for the credit builder add-on. This will improve your credit report and the good thing is, there are no checks on your credit history because you arenandrsquo;t borrowing from lenders. Hence anybody can apply and be successful with a 100% acceptance rate.

2 - Apply for a loan

In all fairness lenders wonandrsquo;t give you the time if your credit rating is in the red but getting a loan will considerably help your credit rating and your credit score. Yes, you may have to repay a large APR but it will be worth it in the long run. My recommendation is to loan a small amount, anything from andpound;100 - andpound;1,500 and then stretch that over a 12 month time scale. As I said you could be paying back half or more of what you have borrowed but the fact you have been approved for a loan that is clearly visible on your credit report is a big aid. Donandrsquo;t loans more than you can repay and make sure you can afford the repayments.

3 - Search for a credit card designed for thos with bad credit

Countless of these credit cards will be hold a 35% - 50% APR which is substantially high and in-turn puts countless people off, but here is the way to go about it, if you take one out and get accepted only use a little of the money obtainable so that you are able to meet the repayments every month and steer clear of incurring any interest fees. By using 10% to 30% of a andpound;150 limit you will keep your account in control and really help your credit report.

4 - Donandrsquo;t close down your old back accounts

This doesnandrsquo;t really increase your credit rating but if you close inactive bank accounts this can have consequence on your credit report. Keeping old bank accounts going helps you uphold a constant credit history.

About the Author

For further information regarding personal finance visit Finance Talks Ltd, they offer free impartial advice on the different types of insurance, loans and credit cards available throughout the United Kingdom.

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This Article Has Been Published on Tue, 16 Jun 2009 and Read 209 Times

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