How can I improve my credit score?
There are a few ways to improve your credit score. Our top tips are:
Try to build a credit history
A few ways to do this are to open a bank account, put household bills in your name, get a basic form of credit like a mobile phone contract or if possible, add rent payments to your credit report (e.g. Credit Ladder).
Always make your repayments on time!
Sounds obvious, but be sure to pay all your bills on time. Late or missed repayments stay on your credit file for 6 years and can be really bad for your score.
Space out credit applications
Making several applications in a short space of time could make lenders think you’re desperate for credit, and therefore more of a risk. If you need credit, the best approach is to:
Apply for one product at a time
Use an online eligibility checker to see which credit deals you’re more likely to get
If you do need to make another application, try and wait several months
Minimise credit use
Maxing out your available credit (e.g. 100% of your credit card and/or overdraft limit) could indicate you're bad at managing your money and potentially at tipping point. As a general rule, keep credit utilisation below 50% (e.g. if you have a bank overdraft of £1,000, try to use no more than £500 of it at a time).
Register to vote
This helps lenders confirm your identity and address when you apply for credit meaning they’re more likely to approve you. Make sure you register to vote at the address where your cards are registered.
Regularly check your credit report
If something's reported incorrectly, it can take a bit of time to get fixed, so best to check your credit file every few months. This will also help you spot if you've been a victim of identity fraud. ClearScore and Credit Karma are two providers that let you see your credit file for free.
I hope this helps. For more info or tips, our blog's a great place to start!
