Improve credit and prevent negative marks

Here are a few ways to help you improve credit rating or avoid a downturn in your score.

06:27 28 November 2013

If your credit rating has seen better days, you are probably used to hearing rejections from most lenders. While it can be disheartening, the good news is that there are ways to improve your credit rating or prevent it from taking a further beating.

• Check ratings—check your credit rating and scores at least once per year to make sure that the information reported on your history is accurate, and up-to-date. Keeping an eye on your history will alert you to possible fraud or other issues.

 

• Minimise inquiries—if you are in the market for a home, vehicle or personal loan remember that the more times you apply for credit, the lower your credit score will be. You may be able to pull your own report without it negatively affecting your score, while still allowing potential lenders to access the necessary information. Too many inquiries in a short amount of time can make lenders more cautious when regarding your application.

 

• Accept help—if you are not sure about how to improve your specific credit rating, you could check resources to see what professional consultations are available. Professionals can give you highly specific information about how to best tackle any issues on your credit report.

 

• Manage payments—each payment you are able to make by the due date helps your credit rating a little. When you have multiple payments each month, it can bolster your credit rating slightly over a shorter period of time. Lenders can see evidence of financial responsibility by looking at payment history. Setting up automatic payments can help you avoid late fees and negative marks on your credit.

 

• Credit limits—it is best to stay under your credit limits, so avoid maxing out your credit limits. If possible, reduce the number of open credit accounts that are available to you.