Credit Card Articles

With the number of people who have a poor credit history in the UK constantly increasing I feel It necessary to write this article and hopefully help as many people as possible to repair their credit rating. Your credit rating is extremely important as it affects what mortgage rate or product you are applicable for, this is also true for any loans, credit cards or finance you may be applying for.

People who have a bad credit history will be offered a worse deal from their mortgage, loan or credit card company simply because they have had bad credit in the past. You will receive a bad credit history if you have arrears on any mortgage or loan, have CCJs, defaults, IVAs etc.

Do you have a bad credit history? If so, read on and I will tell you how to improve your credit rating

The majority of people have a mortgage nowadays, and via your mortgage is one way of repairing your credit rating. Many mortgage lenders now offer a credit repair scheme, which as per its title is designed to repair your credit. The way this works is you pay a higher interest rate for the first 2-3 years and providing you dont miss any payments your credit rating will dramatically improve and you will then be eligible for the prime rates (The rates offered to people who have a clean credit history).

Another way that you can improve your credit rating via your mortgage is by consolidating all of your outstanding debt with your mortgage. This is only available for people with a lot of equity in their property. By doing this you will be paying a lower rate of interest on your outstanding debt as mortgage rates of interest are lower than the rates you would pay on any credit card or loan. This, will therefore decrease your monthly payment hopefully enabling you to meet all of your payments and in the long run repairing your credit history.

The final way to repair your credit history is by not keep applying for different loans or credit cards. By this I mean that if you have a credit card and continuously switch to find a lower rate this will have a bad affect on your credit rating. The reason for this is everytime you apply for a mortgage, loan or credit card what is known as a credit check or credit search is carried out, everytime you have a credit check or credit search carried out your credit rating gets worse. Therefore, by not keep applying for different mortgages, loan and credit cards your would improve your credit rating.

There are also various other ways to improve your credit rating, these include; not changing address too often i.e every year, having a home telephone number and also being on the voters roll.