The Fastest Way To Fix Your Credit Rating In The UK

There was a time when credit ratings hardly mattered and anyone applying for a credit would be accepted. It goes without saying that these times have long gone. Today, even a perfect credit rating is no longer guaranteed to get your a credit – and, as thousands of households have already discovered, an imperfect one is sure to get you nothing at all. Unfortunately, credit ratings are extremely vulnerable. A single missed or late payment can already make that decisive dent and turn you into a potential risk from the bank’s perspective. Once damaged, meanwhile, it is by no means easy to repair or boost it, with detrimental effects on your ability to buy a house, a car or even some smaller items. Nonetheless, there are a few things you can do to get your credit rating back on track again.

Expert advice

For starters, you need to realise that you’re neither the first, nor the only one facing problems with your credit rating. As a result, over the years, a plethora of advice has accumulated, some of which can come in handy.

If you’re just out to gather some information and compare different banks, for example, make sure to apply for a ‘quotation search’ rather than a ‘credit search’. Also, make absolutely sure to set up your standing orders in a way that ensures you’re never once late with a payment. And even using a fixed landline number instead of a mobile one on your application form can be interpreted as a sign of stability. Make sure to collect as much expert advice as possible and to implement it – every little bit helps, as they say.

Get yourself a prepaid card

What type of credit card you’re using can make a significant different in terms of improving or destroying your credit rating. The best card to get, without a single doubt, is a prepaid card. This is because a prepaid card offers the same basic facilities as a credit card without actually allowing you take up any credit. This way, you can’t build up any more debt and bring your finances into equilibrium again. To banks, replacing your standard credit card with a prepaid card is a clear sign that you intend to do something about your situation and really want to make a change. In terms of getting back into the black again and standing a chance for your credit application, nothing beats it.

Get your budget into balance

Although a prepaid card is a great help in terms of improving your credit rating, it is vital to back it up with an improved spending behaviour. Unless you can make your earnings exceed your income at the end of the month, you may still have to turn towards payday loan providers and borrow money after all. This entails calculating exactly how much you’re spending each month, what you’re spending it on and where you can make a few cuts. Afterwards, set up a precise and detailed budget for your purchases, and separate it into necessities and extras. This way, you can make sure to only spend what you have and account for it – something banks always appreciate.

In the end, of course, none of these measures is going to repair your credit rating overnight. The fastest way to fix your credit rating may still take its time. But knowing you’re taking the right steps can definitely be worth a lot in times without guarantees.

This article was written by Gavin Whittaker in association with Tuxedo, a leader in the field of currency- and prepaid cards. Gavin Whittaker is a journalist and editor from the UK. He has been writing about finance and economics for the past ten years.

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