5 tips to improve your credit score
With the number of Brits applying for credit rising every day, improving your credit score is the first thing you should aim for in order to ensure your pay loan request is successful.
“Each lender applies their own criteria when processing an application, and it is almost impossible to second guess when applying. Consumers need to be savvy and understand what they can do to minimise the risk of being rejected,” said Tim Moss, head of loans and debt at MoneySupermarket.com.
If you know your credit score is less than perfect, or you dont have much of a credit history, there are steps you can take to improve your rating and increase your chances of getting a loan.”
Check your credit report - It is important to check what your credit report shows and correct any mistakes that could decrease your credit score. Statutory credit reports can be purchased for just £2, check the top credit reference agencies -Experian, Equifax and Call Credit- to make sure the information is the same.
Always pay on time Missing or late payments will leave a black mark on your credit score. Make sure you pay on time by using direct debit or a standing order.
Close unused cards Financial companies pay more attention to the total amount of credit available to individuals, rather than to the amount they owe. Therefore, to have a clear credit score it is essential to close down those accounts that are not in use.
Stick to your credit limit – Exceeding or staying close to your credit limit could be taken as a sign of financial stress, so keep always below the boundary is possible.
Register to vote Many companies use the Electoral Roll to fight identity fraud so make sure youre registered on the Electoral Roll at your current address, or your application will be declined even if your credit record is clean. You can register online.
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