Being in a bad financial situation puts you in the same position as many people around you. The rise of those who are getting into debt and are unable to climb the property ladder because of it is more prevalent now than it ever was. For some people, it’s become an impossibility to get on the property ladder while renting a house, because the costs to get a deposit and fees together are just too much.

There are also those who have bought a house before, but because of the financial downturn have lost it to the bank. If you find yourself as a homeowner and you’re struggling because of the state of the economy, you need to get some expert advice from people such as bankruptcy attorney Ryan Dove, who can talk you through Chapter 13 bankruptcy and how it can help you. Sometimes the economic downturn can affect your finances so badly that trying to get the money together to buy a home can be simply impossible. Improving your credit rating isn’t always going to be a simple process, but with the tips below you can improve your credit rating so that you can expand your chances of getting a mortgage one day.

• Rebuild the credit rating that you have by using and paying off a credit card every month. You need to show your creditworthiness by paying off what you borrow as soon as you can.
• Stability is key with your rentals, as you need a long enough history to prove that you can make repayments. With that in mind, try not to move house too often. This can and will reduce your credit score.
• In the same way, stable employment can make a massive difference to your record as you can prove you’re able to hold down a secure income.
• When it comes to overdrafts and bills, set up direct debits so that you can ensure that no matter what, the minimums are always paid on your debts. Paying down debt is vital for upping that credit rating as much as possible.
• Ensuring that you are a registered voter can make a huge difference to the way that your credit rating sits.
• Unused limits on loans and credit cards are not a good thing to have sitting there. Instead, close down accounts that you aren’t using, as lenders can get quite nervous at large amounts not being used.
• Over time, your bad credit history will reset, but you need to work on it actively before then. It can take six to seven years for bad credit history to fall off of your record, but you need to maintain a good credit history in the meantime.

Taking the time to work on your credit rating can lead to you being approved for a mortgage with your bank and you need to work on this if buying a house is your dream. Don’t let your dreams die due to low credit; build it up and work for what you want.