- 1). Check your credit file. Before applying for any additional credit, contact the main credit reference agencies and order a copy of your credit report. You can either arrange to have access to your file online or order a hard copy. There is usually a charge involved but some agencies run free trials online which you can cancel once you've used them, thus avoiding a fee. It's wise to keep an eye on your credit file, so signing up for long-term online access is a good idea if you can afford it. If the fees seem too expensive, you can always take out another free trial next time you are considering applying for new credit.
- 2). Ensure that you can read your report. If you have trouble understanding it, contact the agency who issued it. Although your report should come with instructions on how to read it, many customers complain to credit reference agencies that some of the information provided is hard to decipher.
- 3). Check your credit report carefully. Once you are confident that you fully understand how to read your report, review it for errors. Make sure that all information is 100% correct. Ensure that all payment information is accurate and that you have not been incorrectly linked to any person or property to which you have no financial links.
- 4). Contact protagonists on discovery of any errors. To maximize your chances of being accepted for further credit, it is imperative that any error on your report is corrected by the lender and the credit reference agency in whose file it sits. Contact both and insist that the error is rectified as soon as possible. If the credit reference agency is slow to act, it may be possible to obtain a statement from a lender acknowledging that an entry in your file is incorrect.
- 5). Pay down other loans and credit cards. If you can afford to, pay them off and close any other credit facilities you have before applying for additional credit. In some cases, however, it is not enough to simply pay off any other account, as some lenders are wary of customers who have an unused facility available.
- 6). Make sure all of your bills are paid to date. Pay your phone bill and any others that appear on your credit file. Even if you have slipped behind with these in the past, it is likely to improve your chances of securing new credit if these are settled.
- 7). Fill in your application accurately. Make sure that all of the details you input to your loan application, from your personal information to the particulars of your employer and other debts, are 100 percent accurate. If your credit score is not what it could be, these details could make the difference.
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