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First Steps on Improving Your Credit Score

First Steps on Improving Your Credit Score

If you are looking to buy a house and find a mortgage, get better car finance options, qualify for lower credit card interest or generally get some life perks, you will typically need a good credit score. Not everyone keeps a high credit score and this is due to frequently missed payments, taking out new credit cards, requesting credit frequently and some other factors you need to watch out for. Here are some of the steps you can take to improve your credit score…

Don’t Keep Moving House, Stay Put in One Place and Prove it

It is much better to stay at one set address over a long period of time, than to move around lots. Your credit rating will drop if you keep moving house or if you don’t update your address on the electoral roll, so make a conscious effort to update it if you have recently changed house.

If you want to move house as you are finding the rent too high or for other reasons, this probably won’t have a positive impact on your credit score, especially if you have recently moved into your current house. If you are struggling with personal finances, there are options like no credit check loansthat can be borrowed and paid back in a set amount of time. Make sure you check all the terms and conditions before signing up for any loans.

Make Sure all Your Standing Orders and Bills are Paid on Time

Paying your bills on time will have a huge influence on your credit rating, if you miss a payment it indicates lack of money and therefore, you will be penalised by a drop in your credit score. If you know you have up and coming payments you can’t afford, try to get some help from friends or family before the payment bounces on your card. Think about changing your living situation if you can’t afford what you currently need to pay for. Sometimes an expensive car finance and a high phone bill will knock you off if you’re short on money, think about finding something more affordable if you are in this position.

Don’t Request Credit on a Regular Basis, Keep It to a Minimum

It isn’t a good idea to apply for credit regularly, if you want a credit card for example, don’t go to lots of different banks and apply. Stick to one main bank for an application and don’t apply often if you get rejected the first time. The same goes for applying for loans, make sure you don’t regularly make applications. Once or twice a year should be your maximum. It will look like you are desperate for money if you have lots of different applications for credit going on and this will make your credit score drop, as you won’t seem credible or reliable.

Victims of Fraud Might Suffer a Hit on their Credit Rating

If you have been a victim of fraud, this might have unfairly affected your credit rating. Unfortunately, to get your credit rating up again you will need to take most of the steps above but luckily being a victim of fraud won’t stop you taking out credit and hopefully won’t affect your credit rating like other factors do.

Now you know how to start improving your credit rating gradually, you can avoid making mistakes and try to improve your rating. This will lead to a healthier credit for the future and enable you to get more benefits and afford a better lifestyle. Unfortunately, improving your credit rating isn’t a fast process, you will need to prove yourself over time and if you have a particularly low rating it might even take a few years to improve.

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