How to improve your credit rating

Now as an ethical lender, we believe that we offer some incredible products that no doubt can help you in a time of emergency, including our logbook loans. We also believe, however, that we have a duty to help educate our clients as well as potential clients, especially those that suffer from a bad credit rating. This is often the reason you approach us for a logbook loan in the first place.

In this article, we are going to look at ways in which you can turn a poor credit rating into a positive one by following a few simple tips and tricks.

Do you even know your credit score?

Perhaps the best place to start is to know exactly what you are dealing with. To do this, you should check what your credit score is. Now this is far easier than you think. In fact, many companies in the United Kingdom offer a service where you can check your credit score for free once annually. They will provide you with a credit report in which you should be looking for any areas where you have defaulted on a payment. Also, check for potential errors. These do happen and can affect your credit score negatively. If you do find any, make sure that you have them corrected by reporting them to the relevant credit agencies. Now write down your credit score and you can check it again in a year for free. Hopefully, at that point, it would have improved. Even logbook loans allow you to borrow money no matter what your credit score, it really is in your interests to improve it should you have a low rating.

Credit cards

Credit cards are definitely a two-edged sword. If you use them properly, they are a great way to build up a positive credit rating. However, use them incorrectly, and rest assured, the opposite will happen, and fast! Unfortunately, many people do not use their credit cards in the way they were intended. They should be for emergency purposes only, not to buy the latest and greatest flat screen HD TV just because you want one. If you use your credit card in this way, you will quickly max it out and struggle to make repayments. If you are the type of person who struggles to use a credit card properly, try to pay it off and then close the account. Also, never ever skip a payment on your credit card. This too will only lower your credit rating significantly.


In today’s day and age, running up debt is a foregone conclusion. But rather let it be good debt, debt that is a necessity. What is good debt? Well, consider your house for example. Owning your own home is something we should all strive for, however to do so, you will need to take out a mortgage. This is good debt. The same with a vehicle. Often, we cannot do without one. Again, this is a form of good debt. Running up debt on your credit card for the latest smartphone, HD TV or even trendy clothes certainly isn’t considered good debt.

Pay on time and pay the right amount

No matter what accounts you might have and no matter how small or large the balance on them, always make sure that you pay your bills on time. Look at your monthly statements, find the payment date and instalment and make sure you pay the right amount. Never underpay as again this will affect your credit rating negatively. If you are the forgetful type, either setup debit orders to pay your bills or make use of your smartphone to set monthly reminders. This way you cannot forget.

By following these simple steps and by sticking to them, you can turn a bad credit rating right around. And that will open so much more possibilities for you. If you are struggling with debt, don’t be afraid to seek help.