Your credit score is low? Better read these x tips on how to improve it.
Although we can get away with a poor credit score in our younger years, it becomes increasingly important as adults. The ability to take out credit on important items and purchases is when handled responsibly, invaluable in accessing key things in life such as a new car or house.
The caveat here is obvious, but we’ll say it anyway; a great credit score brings with it a serious need for responsibility and sound judgement. With that out the way, let’s look at how you can improve your credit score. You’ll be surprised at how straightforward the process is, so keep scrolling!
Register for the Electoral Roll
Not what you were expecting, was it? Many people are entirely unaware of the fact that registering on the electoral roll will improve their credit score.
The reason is somewhat simple. Credit providers make their estimates and decisions based on as much information about you as they can find. Being on the electoral roll means they’ll have extra information on where you’ve been living for the last few years. Essentially, it lets them confirm easier your name, address and residential history.
A quick win, then. And you get to have your say in elections too – everyone’s happy.
Check your credit score before applying for anything
It’s often the case that a denied application affects your credit rating. While many lenders and companies offer ‘soft’ applications that don’t do this, it’s often unclear whether they do or not – and it’s a real risk to your score if you’re turned down and marked as such on your credit file.
It’s also possible that previous lenders simply made mistakes with your record. Stories abound online and in the news of individuals who have suffered from poor credit scores simply because a credit provider didn’t close their record properly, leaving them technically in debt on their system – and on their credit score.
There are many ways to check your credit rating for free. A quick Google search will give you the most popular options, such as Experian.
Clear your debts
Sounds obvious, but you’d be surprised at how many adults in the UK try to improve their score without addressing outstanding debts. Repaying minimum amounts each month will do little for your score. Instead, making large payments, or clearing debts entirely before payments are due, signals to lenders that you are proactive and reliable.
To help you clear many debts, you can consider debt consolidation. You do this by taking a single loan through a service like ours and using the capital to clear all your debts. In this way, you reduce the administrative burden of managing lots of small obligations and can improve your credit score at the same time.
Apply for credit you know you’ll be accepted for
Credit scores are all about trends and your history as a spender. If you know you’ll be turned down for a loan for a car, scale it down and build up a positive history by taking out smaller credit and payment arrangements.
While this means more time spent managing your obligations as we touched on in the last point, it can be a powerful way to boost your score, particularly if you use a credit card for the payments. Small obligations like phone bills can build your score faster over time and are manageable for most.
If considering this path, however, the team would like to reiterate one thing: be careful and responsible, and don’t let yourself fall into genuine debt through your attempts to improve your credit score.
We hope this helped!
While nobody would say boosting your credit score is exactly fun, it’s still an important consideration for any responsible adult.
We hope today’s Citrus blog has been handy and informative; be sure to stop by each month for more!