Improve your credit score with credit cards, and the best deals available.
Few things are more stressful that being denied credit. Whether you’re looking for car loans or a mortgage, a poor credit score will guarantee rejection, and ensure that, when you are granted credit, you are charged an exorbitant amount in interest. A poor credit score used to only affect those looking to take out a mortgage, loan, or credit card. Nowadays your credit score factors into everything – even your ability to get a contract phone, and the amount you pay for your car insurance!
So how do you go about improving your credit score? While there are many practical things you can do to improve your credit report, one sure-fire way is to use credit cards to increase your credit rating. But how exactly do you do this? And how do you ensure you don’t inadvertently damage your credit report? Follow these easy steps and you will be well on your way to a healthier, happier credit report.
1. Know your credit report
A rookie mistake when trying to improve your credit score is to assume you know how good it is already, and exactly what’s on it. Always check your report before you begin. Companies like Experian and Check My File charge for the privilege of seeing your credit report, but you can obtain it for free on sites like Clear Score. Ensure you have paid off, or are paying off, everything outstanding. If there are any items or defaults you think are wrong, get in touch with the creditor and challenge them.
2. Clear your clutter
Check your file for existing credit cards – there may be old accounts still open, or cards you have forgotten about. Close any accounts you aren’t using. Creditors look at the total amount of credit available to you, not the total amount of debt. If you have an open account with a £1,000 limit that you’re not using, creditors are counting that £1,000 against you. Close the account entirely, or reduce the credit limit to something manageable and start using it regularly.
Use it or lose it!
3. Build some trust
Having clean and well-used credit card accounts on your file will act in your favour. To keep your accounts clear, ensure you: don’t go over your credit limit; are never late making a payment; never miss payments; always pay at least the minimum every month. If you can, use the card for a small purchase each month and pay the full balance each month. Every account you keep well-managed counts in your favour. But be careful: don’t over-extend yourself and end up with debts you can’t cover, or too many accounts to keep up with, and be sure to check how much you are paying in interest! Start with one account, ensure you really can manage it effectively, and then carefully consider whether you can afford to add another. Late payments, defaults, and failures to meet the minimum payment required will all count against you, so take care and be sure stay in complete control.
The best credit cards for bad credit
If you are confident you can effectively manage a credit card in this manner you can start to improve your credit report with credit cards. But which cards should you get?
Many credit cards profess to be good for building your credit report. You should be wary, however, and always complete a pre-application assessment before you apply, as each credit application will show on your report. Rejected applications and multiple applications in a short space of time (successful or not) will count against you. Be sure you have a good chance of acceptance before applying and spread your application out.
Here are our top 3 credit card to build your credit score:
• Marbles Classic Credit Card [Click here to check it out.] – 24.8% APR, £250-£1,200 limit
• Aqua Classic Credit Card [Click here to apply] – 29.7% APR, £250-£1,200 limit
• Vanquis Bank Aquis VISA Credit Card [High Acceptance Rates – Click Here] – 29.8% APR, £150-£1,000 limit
Compare all credit cards on my comparison with all the latest up to date credit card deals – Click here.