In the current climate it can be hard to obtain a credit card. Lenders are tightening up and only lending to the most reliable borrowers.

For those who want or need credit it can be a struggle. Everyone wants that elusive prize – a good credit rating.

So how does one go about getting a good credit rating?

It can be tricky, as anyone who has never borrowed anything could have a poor credit rating. Lenders have no evidence that first time borrowers will repay their debts on time and in full.

On the other hand, borrowers who have made previous mistakes, failing to pay back borrowed money, claiming bankruptcy or who have been hit with a County Court Judgement are the so called 'toxic' borrowers who are most feared by lenders.

So what can you do if you are looking to improve your credit rating, either as a first time borrower or as a previous sinner?

The solution can be, for some, to take out a credit card. Many credit card company will lend to most customers, so long as they can provide some evidence to prove that they will be able to repay the debt.

Once you have obtained a credit card, the trick is to repay the debt on time each month, therefore proving that you can be trusted with credit.

You can take out a credit card when you do not need extra cash and use it as simply a tool to lead you onto a time when you can borrow cheap credit.

Try to avoid using the credit card for impulse purchases and simply pay it off regularly. Many credit cards come with 1 year interest free, so it need not cost you anything to build up a good credit rating.

After demonstrating that you can repay a credit card on time each month you will find that there are more options open to you and cheap credit may become available to you.

It is still a good idea to scour the market for deals as well, because many companies use a different points system to assess your credit rating.

You can approach many different companies and find that each has a different credit score for you, so it is definitely a good idea to look around.

Closing any unused accounts will ensure that you do not appear as a careless customer who has multiple accounts and does not keep track of their money.

You can also call round companies and enquire as to why they have placed a black mark against your name and if there is a misunderstanding you can explain the problem and get that set straight on your credit report.

Lastly, make sure that you do not get caught out. You can check your credit report for free and you should not let companies charge you for looking at your credit report.

If a company attempts to charge you for looking at your credit report, do not be taken in. Look elsewhere and find out where you can view your credit report for free.