How Can I Improve my Credit Score?

Improving your credit score is something that you may wish to do if you have been turned down for a financial product or if you want to apply for a large loan, perhaps a mortgage. It is a good idea to think about this before you apply as once you are turned down it could mean that other lenders will reject you just because of this, even if you have made improvements. There are different things that you can try which could help you.

Check Details are Correct

It is important to start by making sure all details on your credit report are correct. This is something which you should do regularly as if you have repaid a loan, for example, you want that to show on there. It is a good idea to make sure that you check it before you make any big loan application or before you apply to rent a home or anything else that is big and will require a credit check.

Register to Vote

It can make a big difference if you are registered to vote. This is because lenders use this as an ID check and so it is important for them to be able to do this – this is a legal requirement that they do this test so any lender has to do it and by being able to check the electoral roll it will be much easier for them to do the required ID check. Do not worry, you will not have to vote if you are registered to do so and your details will not be sold unless you give permission.

Leave Gaps Between Loan Applications

If you make an application for a loan, whether it is accepted or turned down, it will not look good if you make another application in quick succession. It will indicate that you are really struggling for money and that you will not be able to repay a loan easily. Therefore, it is a wise idea to leave a significant period of time between loan applications. This can be hard, because if you are turned down, you might feel that you want to try again and get the money elsewhere. Try to resist doing this if you can though – it is usually best to leave a year between each application.

Make all Payments on Time

It is crucial that you make all payments on time. Not just loan repayments, but also other payments such as rent, utility bills and things like this. It can be much easier to remember to do this if you set up a direct debit to get it paid automatically. If you set these up to go out of your account just after you are paid, you will know that there will be enough money available to pay them. If the dates payments go out are not at this point in the month you can ask the company to change it for you and they will.

Avoid Credit Repair Companies

There are companies that advertise that they will be able to help you to improve your credit score. It can be tempting to pay them to help you. However, free advice is available from the government and it is much better to look for this and find details online rather than spending even more money to get help. Getting help will not negatively impact your credit score but if you have to pay for it, it could mean that you have even less money to afford to make those important payments and so you do not want to do this. It is also unnecessary to pay if there is a free service available that you can use.

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