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Credit score
It’s evident that it pays to have a good credit score when you want to apply for a loan or deal with lenders. Below is the top 5 ways to improve your credit score.
A proof of residential address
Register on the electoral roll at your current address – you can do this even if you’re in shared accommodation or living at home with your parents.
Build your Credit history
Having little or no credit history can make it difficult for companies to assess you, and your credit score may be lower as a result. This is a common problem for young people and people who are new to the country. Luckily, there are some steps you may be able to take to build up your credit history.
Make regular payments on time
Paying on time and in full each time is a good way to show lenders you’re a reliable borrower, and capable of handling credit responsibly. Old and well-managed accounts will improve your score. But be sure to read about the potential impact of unused credit cards.
Keep your credit usage low
Your credit utilisation is the percentage you use of your credit limit.
Usually, a lower percentage will be seen positively by lenders, and will increase your score as a result. If possible, try and keep your credit usage below 30%.
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Check for errors to avoid reduced Credit Score
Even small mistakes, such as a mistyped address, can affect your score and could be enough for a lender to refuse you credit. It’s worth checking your credit report to make sure all the information on it is accurate and up to date. If you do notice mistake, contact the support team directly and request for a charge.
Conclusion
NOTE: If a third-party gains access to your personal details, they could take out credit in your name without you being aware. If you see anything unusual on your credit report, such as an application you don’t recognize. If you notice any fraudulent activity, you should report it immediately.
