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Be Aware of Your Credit

Written By On 01/12/2013

Recently there have been many news stories relating to credit scores, ratings and awareness. There are simple ways to increase your rating, but there are also some naive things you may do unwittingly, that can just as easily cause an adverse effect.

More frequently than recognised, problems are caused completely innocently by forgotten bills or payments. This is why it makes sense to keep an eye every so often on your credit rating so you are not caught whilst being blind sighted.

A simple method to do just that is to check out one of the credit reference services that are available. Probably the most recognised company providing this service is Experian, but there are many others that also oblige, often free of charge.

It is wise to do this because if you do not keep your fingers on the pulse it may catch you out some time in the future, probably when you least expect it. You may wish to buy something in a shop, with interest free credit for example, only to be made aware then. Maybe you'll require something more important such as needing a mortgage or some other form of loan or perhaps you'll want to rent a property.

When you reach those moments in life a credit reference check will very likely be taken out on you. These will not be the times you want to find out that you have to rectify the problems that your history has helped dictate.

There are measures that can be taken earlier for such predicaments and help prevent your credit score being tarnished, or at least begin building it back up.

One simple step is to make sure you are on the electoral roll. Another easy one is to apply for a store card and buy a couple of items on it, but make sure you repay it on time!

If you're younger and do not possess a credit card then apply for one. Use it to pay for something inexpensive. But the trick is not to pay it all back immediately. Take a few months to pay off the loan by making sure you pay the minimum amounts by the due dates. This shows you are responsible and will pay off your debts.

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