Thinking about the future is sometimes not what we want to do right now. I mean many of us are approaching 30 and have no plans for the future. Pensions and investments are something that you should be looking into now rather than later.

This is something that I will be thinking about later in the year but for now I have the issue of removing all the debt that is surrounding me right now.

I have two credit cards online shopping accounts and more. When I worked it all out I figured that I was about £10,000 in the red and decided to hit the black as soon as I can so that I can start to build up my credit rating.

How can I get a better credit rating I hear you ask?

Well, there are some different ways to do this. The simple one is pay off the debt and then make sure that you are not over extending your pay check. This being said though there are times that this is not the case and you need something for the emergencies.

That is where the credit card companies can help you. They offer ‘credit card bad credit’ deals that help you to build up your credit score. To do this they offer you the credit card with a low amount of credit available on the card. I have one and the limit is £200.

Building Your Credit Score

All you have to do to keep your credit rating getting better is to create a regular borrowing pattern, for instance using the card to fill up the car once or twice a month then being able to pay this off in one go will increase your credit rating quicker.

Making small purchases with this credit card and paying it off in full is better than paying the minimum off your card or even worse, not being able to make the payment at all.

For many though building your credit rating is a good thing and should be done sooner rather than later. Just think about getting a mortgage, car loan or even something on hire purchase. There is nothing worse than having your heart set on something and then not being able to afford it.

Finding the right one may be easier than you think as there are price comparison sites on the internet that offer so many ways for you to save and build on a bad credit rating.

A debt consolidation loan is usually a helpful tool in managing personal credit card debt if the borrower uses it wisely.

By consolidating debt, a borrower can get out from the cash flow trap of paying and maintaining multiple bills.

So many people are paid monthly, so finances are forgotten about until the end of the month. This adds to the risk of missing payments.

With consolidation numerous bills turn into one payment that is timed for when you get your pay. There are other advantages too.

Many debt consolidation loans may be provided as fixed payment loans with interest cheaper than consumer credit card accounts. Consolidating debt right into a fixed loan shows that the quantity owed stays the same and results in less interest charges being added on each month.

Furthermore, with less interest charges within the loan, anyone making payments on the same amount as before on a monthly basis is able to see their debt reduce faster.

A consolidated loan also scores better on your credit history than multiple bank cards.

Reviewers see credit cards as problematic; people can increase debt on them much faster than they can anything else.

With fixed loans, the amount is fixed and simply has one direction, down. As debts are paid, the financing report reflects both the good pattern of payment along with the decreasing debt.

This allows the borrower’s credit profile to become better and a greater score with time.

Over the past few years a rising number of consumers in the UK have realised that their credit score isn’t just a pointless statistic that lenders and companies throw into conversation just for effect. Our credit scores are actually hugely important when it comes to our financial futures and since the onset of the global financial crisis many people have realised that borrowing money or getting any sort of credit can be hugely difficult with a low credit score.

Because of the impact of our credit scores on our financial futures it is important to either keep our credit in check, or in the event it has already been damaged, to make an effort to try and repair it. Whilst it can be a long process to repair your credit once it has been damaged it is definitely worth taking steps to improve your credit score if you want to enjoy a brighter financial future. Some of the things that can help you to repair your credit include:

• Check your credit report regularly: Your credit report can be a mine of information, as it contains so much data about your financial transactions and information. However, mistakes can be made even on your credit file so you need to check your data regularly in order to rectify incorrect or outdated information that could be dragging your credit score down. Your credit file contains details of transactions such as loan applications so if someone has been trying to use your name fraudulently you will be able to pick up on this by checking your report.

• Maintain timely payments: If your credit score has taken a hit due to late or missed payments you should start making a concerted effort to pay all of your bills and make your debt repayments on time and for at least the minimum amounts requested. Slowly but surely, this will help to improve your credit over time.

• Don’t make repeated applications for credit in a short period of time: Many people who make applications for finance and get turned down instantly apply elsewhere for credit and get turned down again, and then apply somewhere else, and so on. However, this leaves black marks on your credit report and can look very bad to prospective lenders. You should wait at least three months before making another finance application after being turned down.

• Try and pay down your credit card debt without reducing your credit limit: Lenders will look at the amount that you owe on your credit cards compared to the amount that you have available in terms of your credit limits. By having a lot of credit that is available but unused you look more responsible to prospective lenders and can help to improve your credit score.

Esther is a financial journalist and blogger. She writes about all areas of personal finance from mortgages to credit cards to tax reduction.