How to get credit
Build up your credit rating
3. Build a credit history
One reason for being turned down is simply that you don't have a track record of taking out credit and repaying it according to your agreement.
To build your credit history, you could start with a credit or store card with a low spending limit, use it for everyday shopping and make sure you pay the bill in full each month. That way you will demonstrate that you're a responsible borrower.
4. Register to vote
Register to vote at your current address. This will boost your credit rating and give proof of residence, without which, lenders may turn you down.
5. Make sure your credit report is accurate
Check all the information is accurate and up to date, looking out for any clerical errors or closed accounts that
are still marked as being operational.
If you find something you disagree with, contact the lender and put your side of the story - be prepared to provide proof. Likewise, check that any court judgments that have been satisfied or bankruptcies that have been discharged are correctly recorded and contact the court if you have any queries.
6. Explain yourself
If there's a reason for past problems - you might have missed repayments because of illness - tell the credit reference agencies that hold your credit report. Ask if you can add a note of explanation to your record.
7. If you've been turned down, ask why
Adding a Notice Of Creation to your report might help your chances. You can also use these to explain that you have a thin credit file because you simply haven't borrowed much in the past.Source: www.virginmedia.com