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Before the 2008 economic downturn, a lot of people in the UK have relied on their credit cards to pay for almost everything they want and need.  A lot of these individuals were also randomly offered credit cards by various banks even though their finances weren’t completely checked.  In turn, consumers have become passive and complacent with how they use their credit cards.

With banks and lenders now extra stricter, granting of credit cards and other types of loans now takes longer and tighter.  The outcome — fewer individuals are able to have access to essentially needed secured and unsecured loans such as mortgage, car loans, personal loans, and at times, credit cards.

To have a good credit rating, you should be alert with your records, receipts and documents that has something to do with your loans. 

Keeping track of your credit record is the first major aspect whether lenders decide to give you the loan you need.  Your reputation as a steadfast and trustworthy borrower will generally depend on your credit report.

Your credit report is sort of a reference of everything you borrowed, how much you borrowed, whom you borrowed, etc. so you need to check it frequently and make sure that each and every element is right, up to date, and in accordance with your payments. 

The key details you need to be conscientious of are the balances that you have already paid but are shown as not paid possibly due to lender’s mistake.  A slip-up such as this should be settled right away as it will not only be an additional redundant cost for you, it will also make your credit rating suffer.

The errors on a number of basic details such as your name, address, phone number, or something else that is contradictory, should also be rectified immediately.

If you are moving residence, make sure you cancel your contract or change the information with your electric, water, and other utility bills.  This is to ensure that the next occupants (if any) will not be able to charge these utility costs on your name.  Getting your post redirected is also important to prevent interception of your mails by other individuals that can be used to steal your identity. 

If you share an account with a better half (e.g. live-in partner, spouse, etc.) be sure to cancel the account if the two of you decide to go your separate ways.  If you have a good credit rating and your partner doesn’t, your credit record could get affected by it.  This is what is recognized as a financial association.

Should you ever get to this point, you should cancel your joint account and start your own personal account.  Should there still be a debt on the joint account, you or your partner should shoulder that debt.  The debt should be integrated to your individual account or your ex-partner’s account. 

Lastly, erase the financial association from your credit report by informaing a decent credit reference agency.

If you have never borrowed any type of loan or credit, and it so happens that you are not a newly graduate who’s just starting up, you could have a hard time borrowing from a lot of lenders. 

This is because you don’t have a track record to prove to lenders that you are a borrower that will not have a problem in repaying them.  If you want to start a reliable credit rating, you can begin by applying for a credit-building card and use it to buy things you can pay on time and in full sum, and maintain this account for at least one year.