Your personal credit rating is the invisible force behind your ability to borrow money. A poor credit rating can prevent you from borrowing money for a mortgage or to start a business. The better your credit score, the better chances you have of borrowing larger amounts of money. Poor credit rating will prevent you from opening a merchants account for your business. So if you are looking at increasing your credit score so you can open a merchants account, this list will help you get back on top.
1. Stop applying for credit
The banks and lenders of the world will never lend to you if you have a poor credit rating. You have to first rebuild your score before attempting to apply for new loans. A few small companies do exist that will offer short term loans that are often enforced with a massive interest rate. They can help when you are in a tight spot, but missing a payment will hurt your credit score even more and make it even harder in the future to borrow again.
2. Be on the electoral register
This one doesn’t make much sense, but being registered to vote can increase your credit rating. For some reason, being registered to vote can increase the chance of your loan being approved.
3. Cancel unused credit cards
Your credit rating can improve by using a credit card, but you have to make your repayments on time. If you have a card lying around that you don’t use, cut it up and cancel it with your bank. This will also prevent issues arising if your credit card gets stolen. If you have a credit card that you feel happy using, consider using it to purchase low cost items like lunch and dinner. Pay this off immediately to trigger your score to rise.