Being refused credit can be upsetting. However, there are steps you can take to make sure your credit record is in tip-top condition.

1. Make sure you are on the electoral roll

One of the main items of a credit check will be confirmation of your address. As well as a check on the voters’ register the check will examine your postcode, to show the sort of area you live in and how long you have been at the address. You will also be asked if you own the property, as home ownership makes you a better risk.

2. Install a landline phone

This is another indicator of stability of residence, compared with having just a mobile.

3. Pay your bills on time

If you have had a poor credit record in the past, it will be improved if your record shows that you are now making payments on time.

4. Cancel unused credit cards and close dormant accounts

Lenders may look at an array of credit cards and fear that you might be tempted to over-extend yourself. Dormant, but still open, credit card accounts also leave you at risk of identity theft. Lenders understandably want to make money out of you – it is their business – and some may not take kindly to “card tarts” who circulate 0% credit balances between cards, though of course many do, hoping you will end up as a customer with them.

5. Consider a “starter” credit card

If you can’t get credit and you need to improve your credit score, think about applying for a seemingly unappealing card, such as a Vanquis Abacus Visa card, with an interest rate of 49.9% APR, or a Capital One Classic Visa card, with an annualised percentage rate of 34.9%, and a credit limit as low as £200. You must not be tempted to borrow beyond the initial interest-free period on these cards, of course, as the interest rates are ruinous, but if you use the card prudently, and pay off your bill in full each month, you will be building up your credit record and showing that you are a responsible borrower.

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