WHEN you’re in debt, everyone and their mother will probably be trying to give you advice on how to get back on your feet. Instead, why not bear in mind the wise-words of these great thinkers when you start credit-building, and sort out your finances yourself.
Oscar Wilde, writer, poet.
“A man who pays his bills on time is soon forgotten.”
Why not apply Oscar’s logic to your finances? Try to pay off loans and credit agreements ahead of schedule. Lenders will look favourably on this. If you want your repayments to have a positive effect on your credit-score then pay ahead-of-time, if you can.
Abraham Lincoln, US President
“The ballot is stronger than the bullet.”
How is voting important to credit-building? You can improve your credit-score by making sure you are on the electoral roll. Many companies use the electoral roll for verification purposes in order to combat identity fraud, so it’s essential you get registered by contacting your local council and asking for a registration form. ‘Honest Abe’ knew the importance of being a voter, and so should you.
Thomas Edison, inventor
“The perils of overwork are slight compared with the dangers of inactivity”
Credit-inactivity can be a dangerous for your credit-building. It sounds contradictory, but not having credit cards or loans can actually work against you. Lenders will be looking for evidence that you are capable of repaying the money you have borrowed.
Sir Francis Bacon, philosopher
“Knowledge is power.”
You need to make sure the credit information held about you is correct. How do you acquire this knowledge? You can get the information online from Experian or Equifax. If the information held on you is incorrect, you can get it changed to help you credit-build.
Charles Buxton, English philanthropist, MP
“In life, as in chess, forethought wins.”
Planning ahead can keep from you falling-foul of penalty charges. Set up direct debits and standing orders to make sure payments go out on time and that your credit-score is protected.
Along with these ideas, you can also build your credit rating by making sure that any settled County Court Judgments are recorded on your credit file.
You should also need to keep your records up to date with any changes in your circumstances, such as being recently made redundant or divorced. You can place a Notice of Correction on your credit file explaining the background to any arrears. Finally, it helps your credit score to have a bank account with a good banking history.