If you don’t look perfect on paper, all is not lost.
It can be a bit of a blow to discover that your credit score doesn’t quite live up to expectations. Many of us are guilty of not practicing great credit score maintenance. We’re more likely to assume we know what it’s going to be and then hope for the best than actually look at the reality. However, reality is essential when it comes to getting credit – and if your reality has let you down then that’s not the end of line. There are many ways that you can improve your credit score.
- Are you on the electoral roll?
If you don’t exist as part of the electorate then this will affect your credit score. It could play a big role in stopping you from getting credit. It’s very simple to register to vote online and well worth the effort for the positive impact on your credit.
- Close accounts that you don’t use anymore
Any accounts that you’re no longer using can have a negative impact on your credit score. If they have high limits then this could mean you’re viewed as a high risk by the lender you’re applying to borrow from.
- Show what a great borrower you are
It’s amazing how much you can achieve with a credit score just by making the payments that you’ve already committed to. Make the payments on time and you’re showing lenders that you’re reliable when it comes to credit. This means you will be able to get better interest rates than on loans for bad credit scores.
- Check whether someone else’s credit is affecting yours
Our credit scores become linked when we open a joint account with someone. That could be a partner, a housemate or a family member. If you have a joint account with someone then their credit score affects yours, and vice versa. If they have a poor credit score then they could be dragging yours down too.
- Pay off your debts
Obviously this is easier said than done if you’re really struggling. However, even chipping away at a small amount of debt can make a big difference to that all important credit score. It’s pretty good practice to try and pay off all types of personal loans you already have before applying for more -this will help you to stay in control.
- Bear in mind the impact of being nomadic
If you’ve moved home a lot then this can make lenders very nervous. Despite the fact that – for the new Generation Rent – this can simply be a reality of life, lenders still view it with hesitancy so bear that in mind.
- Keep an eye out for mistakes and fraud
Your credit file is not invulnerable to mistakes – check the information in your credit report and if you see something that looks wrong then challenge it. The same goes for fraud – any suspicious activity (for example a credit card account for a card you don’t have) should be investigated and reported, not just to improve your credit score but to protect your identity too.