What are all the ways to strengthen a credit rating?

I have never borrowed anything so how should I go about doing this?

What are all the ways to strengthen a credit rating?
Probably the easiest way of getting a credt rating is to get a credit card, make sure that it has low (less than £1500) credit limit, and pay it off IN FULL before the Due Date each month.





This will quickly build up your reputation as someone who honours their debts and will give you a good credit rating. Good credit ratings are useful when you want to borrow serious money, like a mortgage.





Make sure that you really do pay the card in full each month. If you don't then your credit rating will start to slide and you could end up worse off than you started.





The reason for specifying a low credit limit on the card is twofold:


1 To keep your spending in check. This is important especially if you are not used to having these things. It means that you reduce the chance of borrowing more than you can pay off in one month.


2 To protect you in case you become a victim of credit card fraud. This is also something that newcomers may be prone to.





Remember, the idea is for you to build up a good credit rating so you don't need a fancy card maximum limit. You may have to phone the issuing bank to ask them to reduce the limit because they tend to 'default' to ridiculously high figures so that you're tempted to spend more than you can pay off in one single month. They make their money from the interest charge levied on your "overdraft".





Do not use Store Cards. If by some horrible chance you don't manage to make a full payment it will cost you a fortune. Their interest rates are two or three times that of a bank Credit Card. You would also be restricted to that particular shop.





Get your credit card from a well known reputable bank or crdit card issuer (e.g. the High Street banks; the Co-op bank or Tesco) rather than one that is associated with a club or charity.


This will make it easier for you when you have to phone them with an enquiry (which you probably will have to at some time). Also, they will give you better support if you buy goods or services from a company that defaults or goes bust.





It doesn't matter whether you get a Visa or Mastercard, but steer clear of Electron or Solo cards because they have limited acceptability.





You can watch your credit rating grow as time passes by consulting one of the Credit Rating Agencies such as expedia.com. They charge £2 for a statement.
Reply:First find out where your credit is. There is a difference between bad credit and no credit. What you need to do is establish credit. Never assume anything about your credit know the facts before you act, so get a tri-merge report that you own and a lender does not have claim or inquires on your credit.





The best way to establish credit is to get secured cards. You do this by opening savings accounts at your favorite bank, and get a credit card on each account. Use only 10% of the limit. The limit will be the amount you have in savings. Pay off the balance to 0 each month. Do this for 6 months and you will have credit. You should have 3 cards. One for emergency(flat tire, medical, etc.), one for every day (gas groceries things that you have budgeted as normal spending). One for collections (remember use only 10% of the limit on the card, so if you have a $500 card, and a $500 collection charge $50 a month for 10 months).


Pay each card off every month.
Reply:well first you have to have a good balance record, the best thing to have it with is food. so use your credit card to buy food because you pay for them things straight a way so the bank or whoever is checkingyour credit can see you have consistency. Then start paying off little things like phonebills or internet bills be4 they give notice. Then companies will start to see you have a good credit rating. So basically don't start off with nothing big.
Reply:Credit rating is really credit history. You have to take out a loan of some sort and pay it off without default (interest free preferably). Once you have done this a number of times your 'credit rating' will be recorded with Equifax and/or Experian who will confirm to enquiring lenders as to whether you are a good risk, or not.
Reply:You need to start with the basics. You need to get a credit card and use it to start building credit. The easiest way to start is to get a secured credit card from your bank. They will issue you one as long as you have money in your account. Then use it and pay your balance fully at the end of each month. Here is more info. http://www.badcreditfixup.com/how-to-est...
Reply:resettle any loans early, or never miss a payment. get a credit card and pay off the balance every month. if u can manage to do all that, u can get a good credit rating within a year or 2 of 'being good with your money'!
Reply:credit card buy u shopping with it n pay it off right away i did this n got mine up shops kiss my **** when askin for credit now lol