How To Improve Your Credit Score

How To Improve Your Credit Score

Your credit score plays a huge role within your finances and everyday life, so, if it is not up to the correct standard, it could hold you back. Having a good credit score is essential for more than just applying for credit, it holds validation for more than you may think. But, why is it actually important and why should you take your time to try and improve it?

improve credit score

Why Should You Build Your Credit Score?

If you have a good credit score, your financial life will become a lot simpler. You will have a better chance of getting a loan when applying to lenders or brokers, this is because they will see you as less of a risk. If your score is on the higher side, those looking at your credit score will be able to identify that you have a better relationship with finances and repayments.

Always Repay Credit On Time

Repaying on time will always positively impact your credit score, and slowly help it increase. It is very important that you repay all of your bills on time and in full. This includes every type of bill whether it be a loan, mortgage or even some sort of contract.

If you are unable to repay your bills on time, or in full, you should contact your lender/organisation or the Money Advice Service. This will not only affect your personal finances but also cause a drop in your credit score.

Register To Vote

Registering to vote will improve your chances of being accepted for credit. This allows lenders to confirm the information that you have provided them with. For example information like, who you are and where you live. If you are already on the electoral roll, make sure that all of your information is up to date.

Check For Errors

Errors in your credit report can hold you back from being accepted for your desired loan. Therefore, you should take the time to look at your credit report and try to identify any mistakes which may have been made. If you find anything unusual or wrong, we advise you to contact the credit reference agency as soon as possible so your report can be updated and corrected.

Get Credit If You Do Not Already Have Any

There are plenty of ways you can get credit for the first time, and they may be more simple than you think. One way is to open and manage a bank account. If you can manage this, it will demonstrate responsibility with finances to lenders, hopefully, the giving you a better chance of receiving a loan or credit.

Avoid Multiple Applications

When applying for loans and credit, a lender will do a hard credit check to ensure you can afford the loan. Although, a hard credit check will negatively impact your credit score. So, if you do this too often, it may indicate to lenders that you are struggling for money, making them more cautious when it comes to lending to you.

If you are looking for a loan and you are wanting to find the best rate you could contact a broker or contact different lenders asking about their rates before you apply.

Need A Loan But Have Bad Credit?

If you urgently need a loan and you do not have time to increase your credit score, lenders can offer you bad credit loans. Our panel of lenders will be able to offer you a loan, even if your credit score is low. But, you need to ensure that you will be able to keep up with the repayments involved. Along with this, we do not recommend a loan unless it is your final option. You should try to ask family and friends for financial help or use savings. This is because loans may lead to serious money problems if anything goes wrong.