Top tips to help you build your credit rating

It is a well-known fact that credit building can be a frustrating experience. It is a sort of vicious circle as it takes credit to build credit. Without a good credit rating your borrowing options are limited and in many circumstances you can be refused a loan altogether. Fortunately, there are a number of specific tactics you can implement to improve both your credit score and lenders' attitudes towards you.



One alternative way of boosting your rating is taking out store cards or credit cards, using them and paying off the balances on a regular basis. If this option is not available to you, it may be worthwhile asking a family member or good friend with a good credit history to co-sign for a small loan or credit card. Piggybacking on someone else's good credit will re-establish creditworthiness in your own name.



Have all your utility bills in your name. In fact, this is more of a necessity as all lenders will ask you to provide them with at least one utility bill when you apply for a card or loan. Also, make sure that you pay them all on time, it often takes a single missed payment to trash your credit scores and unfortunately it can take several years for the effects to completely disappear. If you are forced to miss a payment, make sure you tell the creditor and the payment is made the following month. If you have outstanding defaults pay them off.

Why not check your credit report online? Credit reports are used to create your credit rating, the three-digit numbers that lenders typically use to gauge your creditworthiness. This is important not only for satisfying your curiosity, but also for guarding you against identity theft. In the event that you find some irregularities on your credit report, make sure you take steps to fix them as soon as possible. However, too many credit checks in a short period of time can downgrade your rating.



Another good tactic to strengthen credit is to get on the electoral roll. A mix-up in something as simple as your house number can cause major problems. Find out how your local council lists your address and follow its lead. It is likely that most banks would use the same style that is on the electoral roll.



Applying for, and repaying in a timely manner, any type of loan is also one of the best credit building tactics you can use. By doing so you can show lenders you are a responsible borrower able to borrow and pay back money owed. But don't make too many applications for credit in a rush as lenders translate that as desperation so you need to space them out.



The reality is that there are no quick fixes to build up your credit. It will take time, patience and strategy but if you are serious about it you will eventually succeed. The last thing anyone needs for their financial standing is another credit denial.