Credit Rating/Obtaining Credit

Missed payments make a HUGE difference to certain lenders.

For example Northern Rock (pre the current debacle), wouldn't touch anyone for mortgages with a missed payment (in my case, a 24 hour late payment for £13 in about 1999!). Best way to build a credit rating is get a good cashback credit card, pay your shopping/petrol on it, and pay it off in full every month.
 
People who don't have credit card or debt sometimes apply for the sake of having one. ie if something came up in an emergency the card would help you.

You don't need debt to get a card. I can give the following tips to help your rating.

If you have an overdraft with you're regular debit account do NOT stay in it. (This effects you quite a lot!) I was recently told by my bank manager that even if I was to go out of my overdraft for a day or two this would help my rating! (Rating/Scoring is done by the bank you are with per month, getting out of the OD for a day or two in that month helps).

Debt does not give you a good rating as lots point out, or are slightly confused. Regular payments give you a good rating such as direct debts. Each time a DD is paid information is sent to the would be people that contributes to your credit profile (Such as payment made for March 2008). Continue to make payments, stay out of the overdraft and have regular income (and not spend all of it) will give you a good rating.
 
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