10 Simple Ways to Improve Your Credit Score in 2019

by on March 4, 2019

Whether you want to take out a mortgage or sign up for a pay-monthly mobile phone, having a good credit score could boost your chances of success. Building up your credit rating is simple when you know how.

1. Make sure you’re on the electoral role

If you’re not registered to vote, you could find it much more difficult to be accepted for finance. Rectify this as soon as possible by heading to the government website to register.

2. Make repayments when they’re due

Lenders use your past financial behaviour to predict how you are likely to behave in the future. Show you’re a responsible borrower (and are therefore more likely to be responsible in the future) by paying what you owe, when it’s due.

3. Check for mistakes on your credit files

Make sure there are no errors on your credit files that could be harming your credit score. To find out, check with a credit reference agency that is usually free of charge.

4. Credit rebuild cards

Credit rebuild cards are essentially credit cards for people with poor credit. If you take one out, spend a little on it each month (only spend what you would anyway), then pay it off in full every month, you are showing that you are a responsible borrower. Normally, as long as you have no other financial issues, you should see an improvement on your credit score after around 6 months.

5. Short-term loans

By the same token, taking out and repaying short-term loans could help you to build up your credit score. However, unlike credit cards which normally have no interest when you pay them off in full, you would have to pay interest on a short-term loan.

6. Avoid ‘footprints’ on your credit file with eligibility calculators

Applying for finance can leave a mark on your credit file. Too many of these could harm your credit rating. Eligibility calculators enable you to check your likelihood of being accepted for a financial product, without leaving a footprint on your file.

7. Make sure your address is up to date

Ensure you have the right address on all of your open accounts.

8. Remove out-of-date financial relationships

If you had a bank account or loan with an ex-partner or flatmate, make sure to inform the credit reference agencies that you are no longer financially linked to that person.

9.  Avoid withdrawing money on a credit card

Taking out money on a credit card may damage your credit rating, so avoid it if you can.

10. Pay your insurance in one go

In order to pay monthly insurance premiums, a hard search will have to be carried out, leaving a footprint on your file. Avoid this if you can.

Improving your credit score is about building up a good credit history, by showing that you are responsible with your finances. It may take a little time and patience but soon you should start to see the benefits.

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