1. Check your rating

The first and most important step you should take in order to improve your credit rating is to check with the credit reference agency such as Equifax to see exactly what’s on your credit file.  You can obtain a report on your credit file by following this link www.equifax.co.uk.

2. Register to vote

Registering your name and address with the electoral roll not only allows you to vote in elections, but is also used by credit reference agencies to check your credit rating.  Without being on the electoral register, you will more than likely be having difficulty credit cards, loans, a mortgage or even opening a bank account.

3. Utility bills

Getting utility bills in your name and making your payments on time shows that you have a fixed address and can also be used as an indication that you are responsible with your finances.  Set up direct debit for all your bills where possible as it ensures that you don’t miss any payments and keeps your bank account more active.

4. Apply for credit

Owning a credit card and making regular payments prove you are in control and responsible, and therefore is an important factor towards your credit rating.  If you do not already hold a credit card, we advise that you apply for one or two as it will give you a chance to show your credibility.  Please note that your first credit cards may start off with small credit limits and gradually increase as you continue to use your card and make regular payments.

5. Cut your cards

If you find yourself with too many credit cards, you cancel some and keep to around three to four credit cards at the most.  Many people are taking advantage of zero per cent balance transfer offers, lots of people even have three or four unused credit cards lying around.  If you’re not using your credit card, there’s not point keeping it.  Closing the credit card account will update your credit rating file and show that you have fewer cards. The same goes for unused or inactive bank accounts.  It is also a worth getting in touch with Equifax (credit rating agency) to inform them when you’ve cleared an account to be sure that it has been removed from your credit rating file.

6. Look secure

Make sure that the details you enter in credit card applications are as accurate as possible.  Small things such as having a landline telephone line provides a sense of security to the lender.

7. Don’t be late

Be sure to pay all your bills regularly and on time.  This doesn’t just apply to credit cards, loans and other borrowed money, but also your normal amenities, such as your gas, electricity and telephone bills.  Missing any sort of payment can be reported to the credit reference agency and will show up on your credit file.  This in turn will be accessed and viewed by other lenders when making an application.  Making payments via direct debit is the best for all parties as it is hassle free, doesn’t involve too much paperwork as your bills are always paid on time.

You should always insure that you have the right funds available in your bank account for the direct debit payments, otherwise you will incur extra charges by your bank and won’t be doing your credit rating any favours.

8. Don’t be desperate

Even if you are desperate for some money, don’t act it.  Making applications for six loans in a week simply demonstrates that you’re in a dire situation – an indication that you’re bad with money and that you might be a liability.  If you have been rejected once or twice in a day or week, be patient, work on building your credit rating, and try applying again after a minimum period of six months.

9. Build your credit

If your application for a football credit card has been declined, try a “credit building” company such as Vanquis (www.vanquis.co.uk), or Capital One (www.capitalone.co.uk).  They will in most cases give you a credit card with a low credit limit and offer you the chance to build your credit rating by making regular payments.  We do not recommend the Vanquis credit card and Capital One credit card to those with good credit rating as the interest rate is higher than the football credit cards provided by MBNA.

10. Phone around

Due to a very high number of consumer debt’s in Britain, there have been a lot of charities and organisations set up, who offer free advice on getting out of debt and improving credit ratings.

Get in touch with the Consumer Credit Counselling Service on 0800 138 1111 or the National Debtline on 0808 808 4000.