Understanding how your credit score is calculated and what you can do to take care of it, can be difficult. We’ve put together our top five tips that can help you boost your credit score.
1. Using some credit
To impress a potential lender, you need to have a track record of using, but not being overly reliant on, credit. Paying your credit card, mobile phone or utility bills on time all help to show this.
2. Registering to vote
Lenders use the electoral roll to confirm names and addresses. Not being on it can reduce your credit score, or cause delays when applying for a mortgage.
3. Checking credit report
Update your credit report before making an important application and dispute anything you don’t agree with.
Having lots of credit checks on file impacts a credit score, so you need to make sure that you’re not applying to lots of different lenders for credit products.
4. Breaking old financial ties
If you’ve applied for a financial product with a partner or friend in the past, potential lenders will see this link and may consider their credit score as well.
5. Explaining unusual circumstances
If you’ve missed a payment or got into financial difficulties because of illness or redundancy, a ‘Notice of Correct’ can be added to explain this to lenders who view your credit report.
If you have any questions, or you’re looking for sound financial advice, contact us here or pop into your local branch, kettles on.