Here are eight magic tips to keep your credit rating high and ahead of the pack

WOULD you credit it? The average household owes £2,562 on credit cards — which would take 26 years to pay on base repayments.

But the recent interest rate rise means anyone taking out a new credit card could face a higher rate, so it will take even longer to pay off.

However, used sensibly with regular repayments to pay off the full balance, a credit card can be a good way to build up your credit rating. And for some of us they’re an essential way to manage work expenses.

So if you need a card but aren’t sure how to get the best deal, here’s our guide on how to get the lowest rate and ensure you pay less.

1. Know your score – Lenders look at your credit report to assess whether you can have a card and decide which interest rate they will offer you. Check your rating for free at Clearscore.com.
2. Correct any errors – Use your credit report to understand the picture lenders are seeing about you. It’s vital to spot and correct any errors.
3. Don’t apply for multiple cards – Applying for several at once can damage your credit score and your chances of getting a good deal, as it looks like you’re desperate for credit.
4. Register to vote – Or make sure you are registered on the electoral roll. This has a positive impact on your credit score and takes five minutes to do. See gov.uk/register-to-vote.
5. Make sure your bank has the right address – This will ensure your details aren’t mixed up with someone at a previous property.
6. Put your name on some utility accounts – And pay the bills on time. The more evidence there is of you paying bills on time, the better your credit score will be.
7. Close old credit or bank accounts – This is a common pitfall. If you have any accounts that remain open, even if there is no balance on the card, lenders may conclude you have too many already.
8. Do a “soft search” – Many websites allow you to see which cards you’re likely to be approved for but without leaving an imprint on your credit file, which lenders can see.

Top toy deals to lighten the load