How to spring clean your credit rating

Easily available credit, along with ever-so-tempting internet shopping has meant that consumers often have several credit cards or loans. If you aren’t careful this can lead to credit card debt and black marks on your credit rating, but don’t panic just yet, there are ways to give your finances a spring clean this year. The experts at comparison site have some wisdom to share on how.

A good starting point is getting to know your current financial situation by knowing exactly what your credit rating is, how you can check it and how it affects your finances.

Back to basics – credit rating? What’s that?

A credit rating is used by lenders to decide whether or not your application for credit is successful – whether it’s for a personal loan, credit card, mortgage or any other kind of borrowing.


How to check your credit rating

There are loads of companies out there that can provide you with a full range of services that allow you to check your score and see if your details are correct. As well as this, many services are now able to advise you on how to improve your score, help you find deals, and spot mistakes in your credit history. Check out the Credit Reports section of for more guidance on this.


How will your credit rating affect other applications?

Simply put, if you have a bad credit rating it makes it a lot harder to get the credit you are looking for. Many providers will only give the best deals to a small proportion of customers.

It’s not quite as simple as just having one rating though. Different lenders will use different criteria to work out your credit rating and therefore you may be accepted by one lender but rejected by another. Confusing right?


Tips to give your credit rating a little sprucing up this spring


Check out your credit rating regularly  

As with everything, if you leave your credit rating too long it can become cluttered and ultimately affect your ability to borrow. Have a thorough clean out of your finances, try to pay off as much existing debt as possible and close down any unused credit cards. Importantly, don’t miss any payments on your existing cards. Doing this will let lenders know that you are serious about your finances and managing your money.


Check every detail

As annoying as it might be, mistakes do happen and they aren’t uncommon on credit ratings. If you do spot something, contact the credit agency immediately with your supporting evidence and they should respond to you within 28 days.


Stop applying for every credit offer available

Every credit card application you make is recorded on your credit file, whether successful or not. So just take a step back for a while and don’t be tempted to keep on applying. Making a flurry of applications for credit might make lenders think you’re in financial difficulty. This will have a negative effective on your credit rating, not a wise move at all.


Remember the little details

Make sure that you’re on the electoral register, it might seem like a little detail but it will make a big difference.


If you are looking for some guidance on spring-cleaning your credit rating this year, then let the Money Guru assist you. Visit’s wisdom section for tips, ideas and guidance.

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