Flash forward 13 years and I am debt free and slowly rebuilding my credit rating so I can eventually buy a house. As I am currently working my way through it I thought I would share some of my tips on how to improve your credit rating.
Step One – Check your credit files
When I checked mine it was amazing how many different versions of the same address I had just because some had the county, some the local area, some the city. You can check your credit files and get duplicates removed.
Step Two – Get on the Electoral roll
Being registered to vote will make you come across as a proper grown up! It is also a great way of proving where you live which goes a long way to improving your credit score.
Step Three - Use your credit cards
So this may seem weird but spend on your credit card! This has worked wonders for me. I got a credit card with a horrifically high APR and I use it to buy all of my grocery shopping. My trick is to have it on Direct Debit and to always pay it off in full each month.
Step Four – Pay your bills on time
It is really important to pay your bills on time as unpaid bills can go against your credit rating. Try to pay all bills by direct debit to ensure that deadlines are met.
If you are looking for more information about your credit rating and managing debt then check out the help and support section on the TSB Bank website where there are loads of practical tips to get you moving in the right direction.