4 Sure-Fire Methods to Build up Your Credit Rating

Method 1 - Apply for a prepaid credit card with a credit builder add-on
At the moment APS are offering a credit builder add-on to their popular cash plus card. The great thing about this card is that you can’t get into debt, so for anyone that has temptation to spend, spend, and spend then this card will keep you in control. Basically, you only put into the card what you can afford and then pay £4.95 a month for the credit builder add-on. This will improve your credit rating and the best thing is, there are no credit checks because you aren’t borrowing from lenders. Therefore anyone can apply and be successful with a 100% acceptance rate.

Method 2 - Apply for a loan
Most lenders won’t go near you if your credit rating is in the red but getting a loan will significantly help your credit history and your credit score. You may have to pay a huge APR but it will be worth it in the long run. My advice is to borrow a small amount, anything from £200 - £1,000 and then spread that over a 12 month period. As I said you could be paying back half or more of what you have borrowed but the fact you have been accepted for a loan that is clearly visible on your credit profile is a massive help. Don’t borrow more than you need to and make sure you can afford the repayments.

Method 3 - Find a ‘bad credit’ credit card
A lot of these credit cards will be 39% - 55% APR which is frighteningly high and in-turn puts many people off, but here is the thing – if you take one out and get accepted simply use a fraction of the money available so that you are able to pay it off each month and avoid incurring any interest fees. By using 10% to 30% of a £250 limit you will keep in control and really help your credit rating.

Method 4 - Don’t close down your old back accounts
Not really a credit building tip but if you close inactive bank accounts this can have an effect on your credit rating. Keeping old bank accounts alive help you maintain a stable credit history.

If you need any further information, help or just general advice on personal finance visit Finance Talks who provide breakdowns on the various types of personal finance that are offered by companies and lenders. Remember that there is no easy or instant fix to repairing your credit, like everything it takes a bit of time but the above methods do work and you will notice a substantial difference in a relatively short period of time.