Freshdesk is the best customer support tool!

Understanding Credit Rating And How To Boost Your Credit Score

Money Matters Editor By Money Matters Editor 6 Min Read

A credit rating or credit report is a way through which your creditworthiness is evaluated by a debtor, especially a business and/or a government.

Through credit rating, your creditworthiness is analyzed and evaluated and it is usually carried out to determine your ability to pay back a debt and the likelihood of default.

Your credit rating doesn’t just dictate what products you’ll receive, but also how good the ones you actually get are.

For example, most loan rates are ‘representative’, meaning the APR depends on your credit score; with credit cards, if your score’s too low for the sexy deal you wanted, you might get accepted but sent a different product.

SEE ALSO: How To Improve Your Credit Score In The UK And Get Your Credit Rating In A Better Shape

Why credit rating is important

In this global economic downturn, not many people can boast of a great or good credit rating because of one reason or the other. But it’s always good to try to keep a clean sheet when it comes to your credit history because it may affect you in the future.

SEE ALSO: Smart Ways To Manage Your Bank Account With Ease

Nowadays, people have become increasingly dependent on credit. This is why it is very important that you understand the importance of personal credit reports and credit rating or score as well as what it does.

To simply put it, when you use credit, you are borrowing money with a clause that you will pay back within a specified period of time.


How to boost your credit rating

Credit score
So when you apply for a credit card, loan, mortgage, contract mobile phone, or even monthly car insurance, your credit rating will be checked to determine the likelihood of you paying back the money you borrowing or services you are signing up to.

Depending on your credit score, lenders will determine what risk you pose to them. So just because one company rejects you, it doesn’t automatically mean another will.

#1). Never let debts pile up

Another very important thing to always remember is that the more your debts pile up, the worst it affects your credit rating. It is imperative to always pay your existing credit card bills and loan repayments on time.

What this does is that it shows potential lenders that you are in control of your finance and more likely to meet future repayments. You should also try to pay off any outstanding credit accounts completely if you have the means.

#2). Know your credit report

An accurate reflection of your circumstances is what your credit report should be. Therefore, it’s very important that you know what your credit report is and whether it reflects the true you.

Your credit report is a personal record of your loans mortgages and credit cards repayment history and other information such as whether you have any court judgments against you. Always make sure that you are up to date!

#3). Update your record

Updating your credit record is very important especially if anything on your credit report needs to be updated or corrected, you need to set the record straight.

In other words, it’s your responsibility to ensure that information or data held about you is accurate and correct. You have the right to challenge entries you think are wrong in your credit record.

#4). Limit your credit applications

The more your credit rating is checked or looked at, the worst it affects your credit rating. When your credit rating is checked, it is recorded in your credit reports and it is sometimes viewed as a bad thing.

The more credit applications you make, the more likely your credit rating will be checked by the lenders and this is not usually good for a healthy credit report.

#5). Always be truthful

It is important that you always tell the truth about yourself and never attempt to lie on an application form. Lenders will find out and any “inaccuracies” on an application could be classed as fraud and as such will tell against you and cause difficulties in future applications for credit.

#6). Identity security and protection

Identity fraud is one of the fastest-growing crimes in the country because nowadays, it is much easier for identity fraudsters to operate and steal your identity and use it in a fraudulent way.


Therefore, it’s your responsibility to make sure that you are monitoring your credit and financial record. If you notice something unusual on your credit report such as a loan application you did not make, you are required to alert the necessary agency because you could be a victim of identity fraud.

#7). Avoid carelessness

If you’re shopping around for credit ask potential lenders for a quotation before they search your credit record. Lenders may view a flurry of credit application searches as suggesting that you are desperate for money over-extended or even that identity fraud is taking place.


Share This Article
Onaplatterofgold features a team of bloggers and content writers. You can also send your article to us at [email protected]. Don’t forget to like us on Facebook and follow us on Twitter.
  • Thanks for sharing your thoughts. I truly appreciate your efforts
    and I will be waiting for your further write ups thank you once

  • This is a well written and excellent post! Very սuseful info ѕspecifically thе lаst pɑrt 🙂 I care for sucɦ informаtion mսch. I ѡas seeking thіs certain info fօr а very long time. Thɑnk you ɑnd good luck.

  • I think it’s good for everyone to understand how credit rating work and how to boost it. Thanks for this excellent and high quality writing, it’s uncommon tο ѕee ɑ nice weblog liҝе this one today…

  • It’s іn point of fact a grеаt and useful piece of information. I am glad tҺat you simply shared tҺis useful info with uѕ. Thank you for sharing.

  • Simply desire to say your article is as astounding. The clarity on your submit is just excellent and i could assume you’re knowledgeable in this subject.

    Well together with your permission let me to grasp your feed to stay updated with forthcoming post.

    Thank you a million and please carry on the enjoyable work.

  • A motivating discussion is worth comment. I do believe that you ought to publish more about this topic. To the next! Many thanks!!

  • Hello There. I found your blog using msn. This is a very well written article. I’ll be sure to bookmark it and come back to read more of your useful information. Thanks for the post. I’ll definitely comeback.

  • What a stuff of un-ambiguity and preserveness of precious experience on the topic of unexpected feelings.

  • Simply desire to say your article is as amazing. The clearness in your post is just spectacular and i could assume you’re an expert on this subject. Well with your permission allow me to grab your RSS feed to keep updated with forthcoming post. Thanks a million and please carry on the gratifying work.

Leave a Reply

Your email address will not be published. Required fields are marked *