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Top 10 ways to improve your credit score
Looking to improve your credit score?
Here are ten top tips to put into action;
1. Pay your bills on time
By making payments on time you can illustrate that you are a worthy consumer who will be able to commit to regular payments, even if it is the minimum amount.
2. Close all unused accounts
If you have any old credit cards, bank accounts or mobile phone contracts still open and you have a different address, this could deter acceptance and come up in ID checks. Make sure all your addresses are up to date and close any active accounts you no longer use.
3. Iron out any creases
Be sure to repair your credit file should you find anything you don’t agree with. You can easily iron out any creases by checking to see of the debt defaults are genuine and fair. If you have a problem, make a complaint to the Financial Ombudsman.
4. Get onto the electoral roll
If you are not already on the electoral roll it may be unlikely that you will get any credit so sign up as soon as possible to do so. You can do this anytime online.
Simply enter your postcode to search for your local council, complete and print the form then send it to your local electoral registration office.
5. Time you application
If you apply for lots of credit in a short amount of time and are rejected, this could reflect badly on your credit report. Moving house also disrupts a score.
6. Show your stability
If you are a homeowner rather than a renter or you are employed full time rather than part time, you are more likely to be accepted.
Being with the same employer, bank account holder and address for a long period also helps.
7. Pay off debts
If you have any outstanding debts you will need to pay them off in order to look more promising to lenders. Use your savings to pay off your debts and lower your mortgage.
8. Don’t worry about your partners credit score
If you are married this should not affect your file, especially if your other half has a poor credit rating. You may only be linked financially through a joint bank account or mortgage, not a joint credit card.
9. Be consistent
If you have a number of job titles or phone numbers it is definitely a good idea to stick to using the same one.
10. Watch out for fraud
If you have been a victim of ID fraud, this could seriously hinder your application. Unfortunately, any fraud that may have occurred at your address could appear on your file, even if you did not commit the act.
Moneyextra.com recommends you take independent financial advice before acting on any article
Back2012-02-02 15:45:39 © Moneyextra.com