1 - Submit an application for a prepaid credit card
Right now APS are offering a credit builder add-on to their popular cash plus card. The good thing about this APS CashPlus card is that you can’t get into debt, so for anyone that has the enticement to spend, spend, and spend then this card will keep you in control. Fundamentally, you only put into the credit card what you can afford to, and then pay £4.95 a month for the credit builder add-on. This will do wonders for your credit rating and the good thing is, there are no credit checks because you aren’t borrowing from lenders. As a result anyone can apply and be successful with APS CashPlus’s 100% acceptance rate.
2 - Apply for a loan
Most credit providers won’t go near you if your credit report is in the red but getting a personal loan will greatly help your credit history and your credit score. You may have to pay a large APR but it will be important for the future. My advice is to loan a small amount, anything from £50 - £500 and then stretch that over a twelve month period. As I said you could be paying back half or more of what you have borrowed but the fact you have been accepted for a loan that is obviously visible on your credit report is a huge help. Don’t lend more than you need to and make sure you can afford the repayments.
3 - Apply for a credit card to help with bad credit
Countless of these credit cards will be hold a 35% - 50% APR which is substantially high and consequently puts many people off, but here is the way to go about it, if you get accepted by the credit card company simply use a portion of the cash available so that you are able to meet the repayments each month and steer clear of incurring any interest fees. By using 10% to 30% of a £150 limit you will keep your account in control and really help your credit report.
4 - Don’t close inactive bank accounts
Not really a credit building tip but if you shut inactive bank accounts this can have an effect on your credit history. Keeping old bank accounts alive helps you uphold a steady credit history.
For further information regarding personal finance visit Finance Talks Limited, they offer free impartial advice on the different types of insurance, loans and credit cards available throughout the United Kingdom.
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