If an adverse credit history has prevented you from buying goods online or obtaining finance in the past, there are steps you can take that could rebuild your credit rating in as little as six months.

Many people use credit cards to help manage their personal finances. Used sensibly and responsibly, credit cards can be important financial tools. However, many people have problems when it comes to being accepted for one. A survey by R3, the Association of Business Recovery Professionals, found that a quarter of applicants – almost four and a half million people – had their applications for credit turned down in recent years.

Improving your credit rating

Lenders make a decision based on the potential risk and profitability of an applicant. They use your credit rating as one of the checks to help them make that decision. Your credit rating is based on information collected by credit reference agencies such as Experian and Equifax. They use past credit history (including missed payments) and publicly available records such as County Court Judgements (CCJs), house repossessions and bankruptcies to help make their decision.

However, there are many steps you can take to improve your credit rating. If you haven’t registered already, make sure you’re on the electoral roll at your current address. Companies use this information for identity verification purposes, so it’s important that you register as soon as possible. So that you don’t miss another payment, set up direct debits for bills and any outstanding debts. If you’re unfortunately refused credit, don’t make a lot of other applications. Each time your credit report is accessed, it leaves a ‘footprint’. Multiple applications in a short space of time can be a red flag to many lenders.

One of the most effective ways to improve your credit rating is to use credit regularly – whether that means purchasing shopping on your credit card weekly or topping up your car with fuel using your credit card and making sure you pay it back at the end of the month.

Credit cards for bad credit are aimed specifically at customers who have struggled to get credit elsewhere. Specialist credit card providers are particularly popular because they have the customer in mind. aqua want to help their customer’s rebuild their credit and access affordable amounts of credit. Advisors even offer borrowers advice on how best to manage their debt.

Because having a good credit rating is so important – for renting a flat, securing a mortgage, getting a business loan or a 0% interest credit card – if you’ve had any credit problems in the past, the best solution is to start rebuilding your credit profile now. Your bad credit rating doesn’t condemn you to a lifetime of no credit. But the more you access and use credit in a sensible and responsible manner, the quicker your credit rating will be restored.


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