Looking to boost your credit score so you can access better borrowing terms? Having a decent rating is important if you want to take out a mortgage or credit card. Improve your prospects by following these top tips.
Check Your Report
There are three main credit agencies: Experian, Equifax, and TransUnion. You can check your report for free with Experian, while your Equifax and TransUnion files can be viewed for free through ClearScore and Credit Karma. Check all three agencies as your score may differ.
Register to Vote
Being on the electoral roll can boost your score as it helps banks verify your identity. With Experian, it can lift your rating by 50 points. It only takes a few minutes to register. Visit gov.uk to find out how.
Get a Direct Debit
If you pay a bill manually each month, consider setting up a direct debit. It shows you are financially reliable and removes the risk of forgetting to make a payment, which can damage your credit score.
Tidy Up Your Credit
Keep credit card balances to no more than 30% of their limit to show lenders you are not over-reliant on credit. James Jones, of Experian, says use spare cash to reduce balances and avoid applying for several deals at once as it makes you look financially desperate.
Check for Errors
Court judgments or credit defaults could reduce your score by 250-350 points. If one was registered unfairly, such as if you missed a bill when moving house, challenge it through the lender or court. Companies can also make errors. If you spot something on your report that isn’t right, ask for it to be removed.
Break Financial Ties
Joint accounts show on your credit report and link you in lenders’ eyes. This means the other person’s credit history can affect your score. If they are being financially irresponsible, it’s best to cut ties.
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