A bad credit rating will make it very hard for you to get credit.
Be aware your credit rating is made up of many factors below you will find my 5 top tips to a healthy credit rating: 1.
Always pay on time.
If you are late on any credit payment it will get registered as such.
The odd oversight maybe OK but a pattern of late payments will damage your credit score.
2.
Do not draw cash on credit cards.
This shows a lack of control of your finances and some lenders use this to flag up risk.
3.
Do not apply for credit when you do not need it.
Every application you make for credit gets logged and shows up on credit reports.
Think about it would you lend to someone who has applied for 10 credit cards or loans in the last year? 4.
Cancel all credit cards and store cards you do not use.
If you don't they will show up on your rating.
Most people have a number of store cards which they used for the 10% off introduction offer but have never used them since.
These will make the number of cards you have look much higher .
Get them cancelled.
5.
Get hold of your credit report.
This will show you what your rating looks like.
Many people see things which should not be on their report and are able to get them removed and improve their rating.
For example I had a credit card on my report which had been cancelled 3 years ago.
Unfortunately the card company had not fully cancelled the card and it showed up on my report.
With the current financial situation it is important for us all to get our houses in order.
Make sure you don't become a victim of the credit crunch.