There are so many myths around your credit score and all of us have worried at one point or another about not having a good credit rating.
Here’s our simple guide to improving your credit rating so next time you’re applying for a loan or bank reference, you don’t have to worry about being turned down.
Be on the electoral register
The electoral register shows who is eligible to vote from each address. Making sure you’re on it is a simple and effective way to improve your credit rating instantly. It also stops any bad credit that previous tenants or owners of your home may have had from affecting your credit rating. Registering is easy, just go to Register To Vote. You need to provide your National Insurance number and date of birth. If you don’t want to do it online, contact your council for a form.
- How to deal with your overdue bills
- Do you need help with debt?
- Is it time for a money health checkup?
Close credit cards you’re not using
Check you don’t have any credit cards that you’re not using. If you have any with a small amount owing then pay them off before applying for a loan.
Have a landline and include it in your application
Put your landline number, instead of just your mobile, on your application as this links your application with your address. It’s a simple way to improve your credit score.
Make sure you’re not a victim of fraud
Most cases of identity fraud are spotted and prevented but it can take people an average of 10 months to discover the fraud. Check your bank and credit card statements as soon as you get them - that way you’re more likely to spot any identity fraud early on. Shred paper containing personal info and don’t give personal details to cold callers or in emails.
Don’t shop around
Unlike in most cases, shopping around for a loan isn’t a great idea. Too many applications, especially in a short space of time, can have a bad effect on your future score. It’s an annoying situation because if you keep getting rejected, you’re more likely to get rejected again. The solution? Ask for quotes, rather than making actual applications. Then select the loan that appeals to you and just make the one application.
Find out more on these credit reference sites. You can also contact them to order a copy of your credit report, so you can see what it’s really all about.
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