A good time to brush up your credit score
Author: Andy Bedford » Publish Date: 6 April 2009
With many borrowers now falling fowl of credit scoring, it’s a great time to take simple steps to improve your credit score; here are some tips on how to do it.
Improve your payment history.
Simple budgeting steps can help improve your credit score by ensuring you always make your minimum payments on time. Setting up direct debits and checking there are always sufficient funds for these payments is pivotal to a high credit score.
Work to a budget.
It can be easier to stay on budget if you work out your fixed monthly bills (e.g. mortgage, car insurance, gas) and transfer your spending money to another account by standing order.
It is simpler to manage when you come to the cash machine. Just make sure you always leave a little extra in the account for bills in case they are higher than expected.
Update your information.
Make sure all your important information is up to date. Credit scores can be improved by ensuring your personal information is consistent and accurate across all sources.
Human underwriters still make many decisions, so it is always good to check everything ties together, such as your driving license, bank details and electoral roll, and that all are accurate & up to date.
Limit credit applications.
When you apply for credit, it is recorded on your credit file. If these increase rapidly, a lender may think you are in financial difficulty or have concerns about fraud. So shopping for a new phone and a store card may be best left until after any mortgage application.
Check your credit report.
It is now possible to check your credit report, so ensure that information is correct, particularly regarding public record information about CCJs, repossessions or bankruptcies and the financial connections section.
If there is anything on a credit report you do not understand, or if you are regularly refused credit for no apparent reason, it may be worth speaking to a mortgage broker or advisor.