Everyone has a credit score, it’s used by lenders to decide whether they will lend to you and at what rate. The better your score, the better your chances are at getting approved for finance.
We’ve made a short video to show you three simple ways you can start building up your credit file:
If you don’t have 3 minutes right now, here’s a simple run down of some steps you can take to ensure your credit score doesn’t hold you back.
1. Register on the electoral roll. Being listed on it enables potential lenders to confirm that you are who you say you are, which makes a big difference to your credit score. You can register to the electoral role or check your status easily online at gov.uk.
2. Pay your bills on time. Even your mobile phone and landline contracts count as a credit agreement. As you pay your bills on time – and ideally in full – each month you are improving your credit score. Even if you’ve suffered from bad credit within the last 12 months, lenders may take into account your recent payment habits as factor in deciding what to offer you. So it pays to keep your accounts straight as much as possible.
3. Check for mistakes on your credit file. even having just a slightly incorrect address can have an impact on your credit score. Make sure you check all your details and report any incorrect information immediately using a provider such as Experian or Equifax.
In essence, by ensuring that your credit data is accurate – and by showing an on-going ability to manage payments – your credit score will begin to improve. For more useful financial tips check out the rest of our blog posts here.