Having a strong credit score is extremely important. It affects your ability to get loans, credit cards, mortgages, finance agreements and more. So if you want to buy a new house, car or make any other substantial purchase, your credit score needs to be in a good place. Here are some things you can do to give your credit score a boost.
Register to vote
You’ll find it much more difficult to borrow money from lenders if you’re not registered on the electoral roll. This is because many credit agencies use the electoral role to identify you and make sure you are who you say you are. It’s quick and easy to register to vote on the government website.
Pay off debts
The more debt you have, the less likely you are to be accepted for credit. If possible, pay off your existing debts before you apply for new credit. For example, you could use a proportion of any savings you have to minimise your debt. So take the time to dispute it. You can check your credit score for free here.
Check for mistakes
Errors on your file can have a huge impact on your credit score, so it’s important to check it. Things to look out for include wrong addresses or telephone numbers, accounts that aren’t yours or unfair defaults on your report. Unfair defaults in particular can be disastrous if you want to borrow money, so take the time to dispute it.
Never miss repayments
The best way to show that you are a responsible borrower is to keep up with your repayments. If you have an existing finance agreement for a car, for example, make sure you keep up with the payments. The same goes for your household bills and other monthly payments.
Don’t apply for lots of credit
When you apply for credit, a footprint is added to your credit file. This stays on for one year. The more times you apply for credit in quick succession, the more footprints are added, and it can appear like you’re desperate for credit. This negatively impacts your credit score and can lead to you being rejected by lenders. When you are applying for credit, ensure you carry out your research and consider all your options .
End negative associations
Did you know that if you have joint financial products with another person, you can be judged on their credit history? Even if your credit file is squeaky clean, you can be rejected for credit if theirs isn’t so good. If you know that they have a poor credit score, avoid taking out a joint mortgage, bank account or loan.
By following these tips, you can make steps to building a good credit score
[…] and make you more of a risk to lend to. Before you start applying for finance, you could consider improving your credit score first to help increase acceptance rates and also get a better interest rate […]