How to improve your credit rating is not a great mystery. You can follow a few simple rules to make sure that you can begin to get your finances back on track. Even going bankrupt doesn’t need to have a permanent impact on your ability to access credit in the future. You may have to wait a little while for the changes you make to have a positive impact on your credit score but it will be worth it in the long run.

Your credit score is very important when you are looking to get any sort of credit, this includes buying a car or a home. You should be proactive in your efforts to improve your credit rating at all times.

1. Get another credit card

This may seem a little counter-intuitive but by getting another credit card and using it responsibly you will be demonstrating that you are a responsible lender. If your credit rating is very low you may need to look at a secured credit card. These are backed by a cash deposit that you make. You should also ensure that this card is reported to the credit agencies like Equifax.

One thing that you should also avoid is running around town attempting to access credit from multiple sources. If you do this you will end up with multiple hits on your credit profile. This lowers your credit rating and you will need to build it back up even more.

2. Don’t miss any payments

You will need to ensure that you pay all of your bills on time. Even one late payment can have a huge negative effect on your credit score so you need to be extra vigilant about this. You can set up automatic payments on your accounts so that you don’t run into any trouble. If you are unsure of the best way to do this then you should get in touch with a specialist so that they will be able to make sure that you are doing all that you can to meet your financial commitments.

3. Become an authorized user

You should make sure that you become an authorized user of a credit card that is used by a family member or friend. This will help with your credit rating provided that the card is in good standing. You will need to be able to trust this person and also hold up your end of the deal. The goal here is not to use the credit card, but to demonstrate that you are able to have access to more credit and behave responsibly.

4. Don’t max out your cards

Keeping your credit balances low will help you a great deal. If you are constantly holding large amounts of money on your card each month this will have a negative impact on your credit score.

5. Keep an eye on your credit report

This is a great way to ensure that you are not doing anything that is harming your credit rating. You may find that you are missing a payment on something without even knowing it. This can lead to some big problems with your financial health if left too long.

Another advantage to looking at your credit report is that you will be able to make sure that the information that is there is accurate. The last thing that you want is to be using a credit card responsibly in the goal of improving your credit score to only have it not recorded.