Many of us have come to a period of time in our lives when we have needed to improve our credit score. This could be for many reasons like getting a mortgage , wanting to get a long term loan or a loan over a shorter period of time. Whatever the reason there are always things you can o to improve your credit score.
Don’t go over your credit limit on credit cards and keep your balance low
Try not to lend more than you have been accepted for and stick to a budget. When you go through credit checks lenders can see what your limit and your balance is. If you are at your credit limit or close the lender may be reluctant to offer you credit as they may think you are living off your credit card/overdraft.
Don’t apply for loads of credit at the same time over a short period of time
Banks and lenders do not like seeing multiple applications for credit and this actually makes your credit score go down every time you are declined. You may be seen as desperate for credit , therefore may be a risk. Lenders may also suspect fraud if loads of applications are made in a short space of time.
Build your credit up gradually
Banks and lenders need to see that you have had credit in order for them to assess how much of a risk you are. They want to see if you have had credit before and paid it off or have had late payments. This can be done using various methods for example you could get a credit card and buy a couple of things each month and pay it off in full or pay off a percentage over the suggested amount.
Don’t miss payments or pay after the agreed date
This can drastically affect your credit score and prevent you from getting future credit. A late payment can stay on your credit file anywhere up to six years. You should always make contact with the lender if you are in any financial difficulty as they can sometimes come to an agreement before it spirals out of control. Also ensure that you haven’t got any CCJ’s as this can also majorly affect your credit score and also stay on file for 6 years.
Check that you are not linked to someone financially
This can also affect your credit score if the person you are associated to has bad credit. For example if you have a joint account or credit account with your partner and they have bad credit this could lower your score.
These are just a few things you can do to help improve your score in readiness for buyig a house or whatever else you wanted to do.