Improving your credit rating
Your credit rating is used by lenders when deciding whether to give you a loan, credit card or overdraft.
Find out what information about you is kept and how you can improve your credit rating.
What's a credit rating?
Your credit rating is used by lenders to assess the risk of offering you credit. It's calculated based on information in your credit report.
Your credit report will contain information on things such as:
- Your recent address history
- Any outstanding credit card and loan balances
Each lender then assesses this information, and the information you have provided in your credit card, overdraft or loan application, before offering you credit.
How can you improve your chances of being offered credit?
1. Keep up-to-date with your existing credit. Paying your existing credit card and loan repayments on time will show that you're more likely to be able to meet future credit payments.
2. Be patient, not persistent. If you're refused credit for a product or service, don't keep reapplying. Wait a few months before applying again.
3. Get yourself on the electoral register. Banks and retailers carry out this standard check to ensure you are or have been registered at the addresses you provide.
4. Don't omit previous addresses. If you've moved a lot in the last three years, don't be tempted to leave out any of your previous addresses. This could be seen as an attempt by you to conceal unpaid credit at that address.
5. Be honest about your credit history. If you've had difficulties in the past meeting your repayments, or you've got County Court Judgements (CCJs) against you, be upfront. This information is easily traced.
6. Settle bad debt. Although unpaid credit and CCJs will remain on your file for six years, they'll be marked as settled once you pay the debt. This could be taken into account when you're making future applications.
7. Get the facts. If you're still being refused credit and you don't know why, contact a credit reference agency to get a copy of your credit report. This will show you all the information about you that lenders and retailers can see. Try Experian , Callcredit or Equifax . These agencies must give consumers copies of the information they hold. There's a small charge and you'll need to provide the agency with your full name and addresses for the last six years.
8. Dispute any inaccuracies. Once you have your credit file, check all the details carefully. You can appeal if you find any inaccuracies and/or add a note to your file to explain any special circumstances.
Please read terms and conditions 1
1. The information given in this article was correct at the time of writing. It does not, however, take account of any changes in regulations, the law or interest rates since that time. This article is not a substitute for obtaining professional advice from a qualified person or firm. Barclays is not liable for any opinions expressed. While every effort has been made to ensure that the information contained is accurate at the time of publication, no liability for damages is accepted by Barclays, the publishers or any other organisation or person providing information, arising from any errors or omissions that may appear, however caused - or from any editorial alterations to submitted information. Barclays is not responsible for the accuracy or content of web sites of other providers which may have links from this website. In creating hypertext links to any other web site, Barclays is not recommending that web site or giving any assurances as to its standing. Examples given of products and services are not exclusive. Other companies may provide the same products and services, and inclusion of a product or service should not be taken to indicate that Barclays recommends it over any similar product or service. Site terms and conditions