How to Repair A Bad Credit Rating

Many people have a bad credit rating even those with well paid jobs, little or no debt, and money in the bank It's also possible for a low salaried person with large debts and an overdraft to have an excellent credit rating A Credit Rating is not therefore associated with personal assets or income levels If you yourself have a bad rating then it’s more than likely down to the fact that you’ve been a constant late payer of bills, have seriously missed final payment dates, and/or have previous County Court Judgments (CCJs) against you.
How To Repair Your Credit Rating Time and patience as well as some sort of organisation is the key Many people with bad credit ratings are in that boat not because they lack the money to settle their debts, rather they often lacked some simple organisation to pay them on time How many times for example have we all woken up and reminded ourselves to pay a certain bill that day, only to actually get round to paying it or posting the cheque a week later! If this is the reason for your bad credit rating then you should have no real trouble in repairing your credit However if you've had many County Court judgements (CCJs) against you then you may have a far more serious problem to resolve Repairing Your Credit Rating is a Two Stage Process
Stage One
There are no real hard and fast rules to repairing your credit rating so it is hard to give a definite plan. However the first thing you should do is get hold of your credit report from one of the two agencies that hold it.Simply write a letter to them asking them to send you a copy of your credit file.When you receive your credit file check it for any glaring mistakes and then check that all your personal details are correct One piece of information that is often critical is to make sure you're on the local electoral role even if you have no interest in actually voting If you're not then make sure you rectify this as soon as possible, and also notify the credit agencies of this fact If you do spot any mistakes on your credit file such as incorrect personal information then make sure you contact one of the agencies as soon as possible asking for them to rectify the incorrect information. Don’t worry too much about the actual procedures because when you receive your credit report you’ll also receive detailed instructions on how to proceed should you need to contact the agency.
Although there are two main credit reporting agencies you only need to contact one of them as they share and pool their data You therefore only have one credit file Once you are happy that all your personal details and previous payment details are correct then you can move onto Stage Two Stage Two
Apply for as much credit as you can while making sure you can pay the debts off on time.
For example apply for a credit card and instead of paying cash for everyday things like cigarettes, the weekly Tesco shop, petrol etc, use your Credit Card But it cannot be stressed enough, you MUST pay this balance off ON TIME every month If you don't then you'll be digging an even greater hole for yourself Remember you are using credit for a purpose here - to rebuild your rating - and not to actually gain credit You may also want to buy a new video recorder or washing machine, try and buy this on one of those 'Buy now pay later' deals which offer 6 months interest free credit. But again you MUST pay off the balance on or before the free interest period expires.
What all of this granting credit/paying back credit (on time) is doing is generating excellent credit feedback in your name to the credit agencies What it tells them is that this person is a regular borrower but more importantly always settles his/her bills on time, and that is a major plus. This strategy will take at least a year and maybe a few years to start to take effect but there is really no other way to do it. Good luck and remember if this strategy is to work then you must get organised because it is likely that the reason your credit rating is bad in the first place is because you lacked organisation when dealing with bills. One tip to get disciplined is to recruit one of your parents/friends/partner etc to make sure you pay your bills on time.