Top tips on how to improve your credit score
Your credit score isn’t just about getting mortgages, credit cards or loans, did you know it can also affect applications for mobile phones, paying your car insurance monthly, bank accounts, energy bills and more.
With this in mind, here are a few top tips on how you can improve your score:
- Don’t miss payments! Obvious? Yes it is! Setting up a direct debit is a great way to make sure you don’t miss one, even if it’s just for the minimum payment, then you can top each month’s payment up if you have any extra cash.
- Make sure you register to vote, if you’re not on the electoral role you might not get any credit.
- Use free eligibility checkers before applying for credit. These are considered ‘soft searches’ and can help you work out the odds of being accepted, because too many searches on your file can hurt future applications. Only you will be able to see a soft search, lenders won’t see it.
- Check your files annually, or before any major application – challenge any errors so you’ve got a better chance of being accepted when you do apply.
- Prioritise applications, do the big ones first, like mortgages – a cash back credit card can wait!
- Always check your file after a rejection, correct any errors before you apply again!
- If you’ve had past problems like CCJ’s or bankruptcy, remember these can stay on file for over 6 years, so time any new applications right. Hold off applying if you can until these big things are gone.
- Don’t withdraw cash on a credit card. It just looks a bit irresponsible, it’s expensive and can make lenders think you have poor money management skills.