10 tips to improve your credit rating fast
Published Thu, Oct 4, 2012 Updated Tue, Feb 16, 2021
There’s a lot of information floating around already and sometimes it’s hard to digest it all and figure out an action plan. So this section serves just that purpose. Here are 10 simple, quick fire tips to set you on the right track for improving your credit rating:
1. Get your credit report
Experian is the main credit agency and they offer 30 days free on their ‘Credit Expert’ service, sign up and get to grips with all the information; know what your starting point is.[cta]
2. Clear up any errors
If you spot any errors on your credit report, notify the credit agencies and get them corrected. Note that information from the last 60 days might not show up yet though.
3. Clear any collection debts
If you have defaulted on a loan and it has gone to collectors, these debts need to be cleared asap. The accounts won’t start to ‘age’ until they are no longer active.
4. Get on the electoral register
Make it easy for credit agencies and lenders to find you, this will also ensure that your credit file is kept up to date.
5. Get a job
To improve your credit you will need to take out loans and pay them off; having a consistent income makes getting credit a lot easier. Applying for a loan when you have no job and poor credit is silly.[cta]
6. Pay off outstanding debts
Structured debts are the best ones to pay off, so start with them. Each time you pay off a debt your credit will get a boost and your borrowing capacity will be freed up, allowing you to apply for new credit elsewhere.
7. Get a credit card
Credit cards are by far the most convenient way to build up a credit history since they are unstructured and you can use them and pay them off constantly. Pay off your card in full each month and build up some new debt to pay off the next month.
8. Get an overdraft
Just another unstructured debt that is helpful to cycle. Also getting an authorised overdraft is a helpful way to make sure you don’t accidentally get an unauthorised one with a barrage of fees.
9. Stop making mistakes
Every time you miss a payment, go past your overdraft limit or try to spend money you don’t have you hurt your credit score. These mistakes are usually very avoidable, so start keeping an eye on your finances and don’t make silly mistakes.
10. Be Patient
Building up a good credit score takes time, so be patient.