We all have wishes and desires, but when we cannot fulfil those desires and wishes we feel really bad and get upset. Have you ever felt the same way? When we see our friend and family with these latest smartphones such as Apple iPhone 4S, HTC One X, Samsung Galaxy Note, Nokia Lumia 800 and many more of these kinds in their hands and pockets, we feel we should also own one of these gadgets. Why do we feel like this? In this article we will learn how to improve credit rating and what are the ways to improve it.
When we see others surfing the internet, listening to music, playing games and downloading apps on their tablets and iPads we wants to do the same. This is called a desire by seeing or possessions.
Most of us can afford to buy them but many of us in UK take these devices either mobile phones or tablets on a long terms 18 or 24 months contract. Now the mobile network in UK will perform a credit check before they give you these devices on contracts, where you could be accepted, offered deposit or even declined all based on your credit record.
What Are The Factors Effect Credit Score & How to Improve Credit Rating?
Due to economical crisis and just gone recession people credit files have been effected due to lose of jobs, unemployment, higher cost of living, increasing demands and various other factors effected their credit history and dropped their credit score. The are various factors to effect credit rating and there are various steps to learn how to improve credit rating as well.
6 Top Factors Effect Credit File To Decline a Mobile Phone Contracts?
1. If you have previously taken a contract and have missed monthly payments.
2. Have never set-up a direct debit before to build up your history.
3. Not registered on Electoral Roll.
4. The address you moved into is blacklisted by the network provider due to previous bad payment history.
5. Missing your credit card payments and incuring late fee charges.
6. Carrying a criminal conviction record.
There are various ways to learn how to improve credit rating and we will list the most 10 important ones below.
10 Steps How to Improve Credit Rating?
If you tried to take a mobile phone contract and have been declined, follow these simple steps to learn how to improve credit rating and your credit score.
1. Check your credit score for FREE and download the pdf to check for errors.
2. If you are unsure of any entries in your credit file contact the UK credit agencies to update or correct the records. It is a good practise to check your credit file on a regular basis, so that you have up-to-date information about you in your credit file.
3. During the time of correction do not try for any credit and do not perform any credit check as each time you perform a credit check, these credit agencies maintain a log file.
4. The more you perform credit check the more your score drops and it shows to the creditors that you are desperately looking for credit and this might often fall against you.
5. If you have missed payments, try to call the creditors and come into a settlement and clear your payments to the earliest. You might agreed to pay small amounts, but once you agree maintain the payments regularly.
6. Stop using your credit cards and other store cards as this will throw you more into debts, simply store them into a secure place or cut the cards into two halfs so that you can’t use it.
7. If you tried for a mobile phone and you got declined, ask the operator to give you a 1 month rolling sim only contract so that you can prove to them that you can maintain regular payments. Once you complete 3 consecutive bill payments, your chances of passing for a mobile phone contract increases by 70-80% as these creditors can see that you are making payments.
8. Do not try for multiple contracts at the same time, if you are allowed to take one, sign up to it and once you paid your one or two bills then try for another contract if needs be.
9. If you are about to move address, do a credit search on the address you are moving into by contacting your local council offices. Once you moved in, make sure to update all your accounts, credit cards, store cards and anything related to your address to the current address. Having two different current addresses in your credit file results in confusion and decline of your application.
10. Do not sign up to anything online that you are not sure of as some of these online services take your complete details promising you to win or get something in return for your details. These companies perform multiple credit checks on you resulting in effecting your credit score.
The above list shows some of the most important steps you should take if you are looking how to improve credit rating and your credit score. Just remember there is a difference between credit and debit, most people think having enough money in their bank account automatically gives them good credit score. Once your credit file improves following the above 10 steps continue to maintain it..