There’s nothing worse than being in financial dire straits and it won’t provide much comfort knowing that millions of people are over-indebted with impaired credit records.

Your credit score and credit record shows how many- and what kind of loans you have. A poor record can hinder your attempts to get a loan you so badly need. Every time you apply for a loan there will be an enquiry into your credit record. Don’t despair though, because there are providers who will give you a chance with getting a loan even if you have a poor credit score. In fact, Clearscore is one of these leading businesses in the UK who want to help you manage your finances and get on top of your debt.

Having a good credit score is important because future lenders look at this to determine what kind of a payer you are. They want to know that if they lend you money, you’ll be responsible with paying them back the right amount, and on time.

Credit Cards can be a Useful Tool

Credit cards can be useful tools towards improving your credit score – as long as you never spend more than you have. It can be convenient paying with a credit card, and if you pay well, you benefit from perks such as rewards and insurance. The key to using your credit card wisely to build up a strong credit rating is moderation. Maxing out your card damages your score, but responsible use benefits it.

Improve your Credit Score – Use Your Credit Card Responsibly

One way to improve your credit score is to get a credit card and to show your creditors how you use it responsibly. You don’t need more than one credit card – in fact, if you have too many credit cards, it reflects poorly on your credit report.

Choose a credit card with low fees and penalties. If you’re feeling bewildered and wondering which way to turn, check out the Telegraph and their valuable information on rebuilding your credit rating with your credit card.

If you don’t have a credit card, apply for a card that is in keeping with your bad credit score. So the perks might not be great, but what’s important is to show your creditors how well you manage this card. It is going to be important to manage your credit card well. Debt and spending can easily spiral out of control. Credit cards can so easily be mismanaged, and if you don’t handle your one properly, you could end up in even more financial trouble.

  • Pay on time. This is a key factor in having good credit, and in fact paying on time makes up 35% of your FICO score. Certainly paying for some day to day expenses with a credit card can improve your credit – if you pay on time every month.
  • Pay in full if you don’t want to pay interest on the unpaid balance. Paying in full every month will improve your credit score.
  • If you’re one of these people who battle to remember payment dates, you can set up a debit order so that your payment comes straight from your bank account. Credit card companies will even allow you to set up a payment reminder so that you receive a payment reminder via text when it’s time to make a payment.

Get on Top of Your Finances

We’re not all good with budgeting and keeping our debt manageable, but if you put yourself in experts’ hands you can have hope with seeing your credit score starting to reflect positively.