Everyday Loans for Everyday Life



How Can I Improve My Credit Rating?

There are many different reasons you may have a bad credit history which can make it difficult to borrow money when you need to.


There can be a number of reasons why people are rejected for credit – some people are rejected by a lender because of high debts, late payments, and county court judgments (also known as CCJs). These may be an indication that you may not be able to meet your repayment commitments in the future.

If anything in your credit report is missing or not up to date, this could also lead to rejection. Contact the credit company and find out why your application was rejected. If they have incorrect information on their records, you are within your rights to request that incorrect information is removed or amended.

Some of the things you can do to improve your credit rating include budgeting for your payments and making sure you always pay at least the minimum monthly payment on your credit card, if you can’t pay it off in full. Do not miss a payment, it could be registered on your credit file and could affect your future credit rating.

You should also register on the electoral role. If you do not register to vote, it is difficult for lenders to verify your identity and they use the electoral role to check that you are who you say you are and live where you say you live.

Some lenders also look for job and residential stability. For instance if you have lived at the same address for a number of years as opposed to moving to a new address every year or two. If you have been in the same job for a length of time, this will help too, typically 3 or more years in the same job is good.

You should also avoid repeat application rejections. If you have been refused credit, don’t keep applying. If you keep applying and keep being refused, each refusal can leave a credit search footprint on your file. Too many ‘hard search’ footprints are likely to lead lenders to think that you are financially over-committed and a high risk.

So if you do reapply for credit, make sure you do so with companies that will only do a ‘soft credit search’ on you – also known as a ‘quotation search’. Everyday Loans will only do a soft search on an applicant and this will not have any negative impact your credit score.

Understanding how your credit history is compiled will help you to avoid situations which may result in you earning a negative credit history.

There are simple things you can do to look after your credit rating:

  • It may sound obvious, but keep your repayments up to date on all your financial commitments
  • Pay your bills on time – avoid making late payments on any debts.
  • Do not miss payments or default on a debt – this includes your council tax and mobile phone contracts
  • Pay credit card bills off in full at the end of the month if you can (or at least try to make the minimum payment)
  • Monitor your accounts for identity theft
  • Do not take on additional credit if you are not sure that you can repay the debt and keep up with repayments.
  • Where possible do not change address or job too frequently as this can affect your credit history
  • If you have defaulted on any debts make sure you clean up your credit history as soon as possible by honouring your repayment schedules
  • Avoid bankruptcy and if you encounter unforeseen circumstances that make if difficult to keep up with payments, speak to your lender immediately and discuss the matter with them to see what options you have.