Increasing your credit score makes it easier to secure credit from banks, building societies and other lenders. It could also help you acquire access to better deals that are available on the market. Our infographic has put together the 10 top tips to help you improve your score and make applying for a credit card or mortgage that little bit easier.
Signing up to the electoral roll with your Local Authority should be a priority, as lenders use this method as a form of checking you are who you say you are and it will be added to your credit report. If you have changed your surname and it isn’t linked to the old one you can use an alias to form a link by contacting a credit reference agency. If you have a joint mortgage or credit card, and your partner has a bad credit score, try to separate your finances to improve your own rating.
Dormant credit cards can make banks wary of lending to you, even if you don’t owe very much on them. One in five of us have three or more credit cards in our wallets or purses, so pay off the balance, cancel your account with the card’s provider and cut those cards up! Prove you are a sensible borrower by sticking to your credit limits and always paying back the agreed amount at the agreed time. The safest method to pay credit card bills is by setting up a direct debit or by repaying the full amount each month. If you have struggled with debts in the past then it may be worth applying for a ‘credit builder’ credit card. Although they have a higher APR using the card responsibly and clearing the balance every month will help rebuild your credit score. Show your stability and you are on your way to increasing your credit score.
Read more: Tips to Score Up Your Credit Score
This article was written for Business 2 Community by Alan Draper.
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