by S. Graveson

Created on: August 09, 2010

Many people require credit on an almost daily basis; from the massive amounts of debt required to finance the purchase or a house or a car, to the daily usage of things such as credit cards or even monthly bills. For many of those same people their credit score is one of the most important things, a bad credit rating can see them struggle to increase the credit they are able to utilise whilst a good credit score can see them becoming more financially flexible in terms of the credit on offer. As a result a lot of people make a conscious effort to increase their credit rating to give them better options.

Some people are aware of some tips and tricks to increase their rating but many others aren't. In fact many people seem to think the only way to increase their credit rating is to go into masses of debt and repay it over a lengthy amount of time rather than control their spending and increase their rating intelligently.

Let's start by looking at utilities. Every time you make a payment on things like your electricity or gas bill you've made a positive payment which should be reported to a credit agency. Though you can pay off your bills like usual you can also take advantage and actually treat yourself. If you're a cell phone user who who never seems to have any credit you may be well off moving to a contract phone. Although they can be expensive if your foolish (in fact any credit can be very costly) they can be brilliant for your credit as long as you pay the bill every month it will be reported. In some cases you may be well off getting a 28 day rolling deal (also known as a SIM only) just to help your credit rating to increase. As long as you stay on top of things it can be a very cheap and very easy to get form of credit that can be a great way for “credit newbies” to start off.

Most adults carry some “plastic” credit with them, be it a credit card or a store card. Although misusing them can be very expensive and hurt you long term financially, using them cleverly can be a master stroke in terms of your credit rating and can be effectively free to use. Some adults fear that just using a credit card will see them plunged into masses of debt and pulled down into a financial mire and as a result will have a credit card that they never use. Though by using it every month you can prove you can handle credit and increase your rating very cheaply.

Every time you make a payment towards your card of at least the minimum payment you get a positive mark. As a result spending a tiny bit on the card every month and paying it all off at the end of the month and clearing the balance allows you to not only make a payment but also avoid any interest to be added on to the account. Though doing this can see credit firms dropping your limit on the cards the credit rating will increase. This is especially useful if you're using a secured credit card and are trying to rebuild your rating. Doing this with several credit cards every month can be brilliant for swiftly raising your ratings.

Finally, the greatest tip to improving your credit score is to not damage it. Make sure you don't start going backwards and missing payments or going over limit. These can massively damage your ratings so stay on top of everything, set up direct debits if your a forgetful sort of person so that they payments are made automatically. You need to remember the more open credit you have the better your rating, so if possible pay a bit extra than the minimum payments (if you can't clear the balance) just to open up your balance. If your going to set up direct debits make sure your bank account can cover them every month before they are taken or you will end up very out of pocket.

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