Having a good credit score is more than simply paying on time and using your credit card wisely. These five simple tips will help you protect your credit rating.
Make sure you’re on the UK electoral register. Lenders like to see that you’re really living at the address you’ve given. It might be nice to be a man of mystery – or a mysterious woman – but it will affect your credit rating. Make it easy for them to confirm who you are.
Always pay your credit card bills and loans on time. Even a single missed payment can mark your file for up to six years. Whether it’s due to a simple oversight or you missed it on purpose for some reason, it won’t go in your favour. Set up a direct debit to ensure at least the minimum amount is paid each month.
Too many applications
Try not to bombard the credit companies. If you apply for loads of credit cards or loans on the trot, it looks like you’re in a financial panic. Most lenders use ‘hard’ credit searches’ and these lower your credit rating slightly each time someone checks your credit score.
Before applying for a credit card or loan, check your own credit history to make sure it’s completely accurate, as you could be rejected due to Inaccuracies or gaps in your credit history. You can do this easily on a website like Experian – sign up for a free 30 day trial. (Remember to cancel before the 30 days are up or they will charge you.) If you spot an error, call us for advice on who to contact to have it corrected.
Reaching your limit
Stay well within your agreed credit limits. If you keep maxing out it’s likely that your credit score will drop. Show the lenders that you don’t need to reply on credit to make ends meet.