How to Improve Your Credit Score

Wondering how to enhance your credit profile and become mortgage-ready? We’ve got you covered with valuable tips:

Review Your Credit Report for Accuracy:

Utilise our Credit Monitor tool to swiftly check your credit file. Ensure all information is accurate and current. If discrepancies are found, promptly contact the credit reference agency to rectify them. If you have a valid reason for a missed payment, consider adding a ‘notice of correction’ to explain the situation.

Regularly Monitor Your Credit:

Checking your credit report isn’t a one-time task. Develop the habit of revisiting it regularly to ensure it accurately reflects your financial status.

Register on the Electoral Register:

Take a few minutes to register on the electoral register. This simple step can significantly boost your credit rating, as lenders use it to confirm your identity, residence, and view your registration as a sign of stability.

Timely Credit Card Repayments:

Avoid missing credit card repayments, as late or missed payments can impact your record for up to six years. Set up a direct debit for on-time payments, and ideally, pay off the entire card balance monthly.

Punctual Bill Payments:

Set up direct debits for regular payments such as utilities, council tax, rent, and more. This helps ensure you never miss a payment, contributing to a positive credit history.

Close Unused Credit Cards:

Shut down any credit cards you aren’t actively using. Having open but inactive credit accounts may work against you.

Manage Credit Card Balances:

Aim to keep credit card balances below 25% of the available credit limit. This demonstrates responsible credit usage to lenders.

Avoid Cash Withdrawals with Credit Cards:

Refrain from withdrawing cash from ATMs using your credit card, as this could have a negative impact on your credit score.

Minimise Overdraft Usage:

Stay within your overdraft limit, and if possible, try not to use your overdraft excessively.

Reduce Overall Borrowing:

Work on decreasing the amounts owed on credit cards and other debts, such as loans.

Sever Financial Ties:

If you’ve severed ties with a partner with whom you shared a joint account or loan, request a ‘notice of disassociation’ to remove the financial link and prevent their credit score from affecting yours.

Demonstrate Stability:

Avoid major changes like moving or starting a new job right before applying for credit. Stability in residence and employment can enhance your chances of credit approval.

Remember, improving your credit score takes time. While these steps move you in the right direction, patience is key. Over time, consistent positive actions should result in a healthier credit score.


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