When it comes to making the most of your life, you may be surprised at how small things can make a massive difference. For 11 months of the year you may not give your passport much of a thought, but if you don’t have it with you when you turn up at the airport for your foreign holiday, you will suddenly find that it becomes the most important thing in the world. Similarly, your car keys are not that big, but when you spend a large part of the morning tearing the house apart in order to find them so you can get to work, you take on board just how vital your keys are.

The same can be said for your credit rating. You may not give much thought to your credit rating or score until you apply for a loan or look to take out credit. Then, if your credit rating isn’t too good, you may find that your credit rating becomes one of the most important things in life. A bad credit rating can prevent you from doing a lot of things in life, which is why it is crucial for you to have as strong a credit rating as you can.  There is also the fact that having no credit history at all can count against you.

This may sound strange but if you have no credit history, there is nothing for banks or financial lenders to make a quick assessment over your suitability to pay off a loan or credit, so they will be less inclined to provide you with finance or credit.

Check your credit rating

First of all, you should have your credit rating checked so you know what it is. If you wait until you really need to know what your credit rating is, you may find yourself in line for a shock, so be prepared in advance.

There are things you can do to make sure your credit file looks and when it comes to improving your credit rating, you should:

• Be registered on the electoral roll at your current home
• Do not move homes too frequently
• Do not move jobs too frequently
• Pay all of your credit agreements on time

If you comply with all of these steps you will find that you will be able to improve your credit rating. One way in which you can improve your credit rating, is to take out a guarantor loan. A guarantor loan is not dependent on having a good credit rating, so you will be able to obtain this funding and if you pay the loan back on time, you will improve your credit rating.