FIVE WAYS TO BOOST YOUR CREDIT SCORE
Try these easy steps to improve your rating…
With the cost-of-living crisis eating into our spending power, more of us have been turning to credit to plug the gaps in our finances. Even before inflation reached its peak at 11.1% last year, UK consumers were spending almost 30% more on credit cards than they had done a year previously. If you’re using credit in any form more than you used to, or if someone close to you is, here’s how to maintain a healthy credit rating.
Challenge errors
Make sure the information on your credit report is accurate. It may be harder to get credit in the future if you don’t have errors corrected. ‘For example, if you’ve recently exited a relationship where your finances were linked – such as a joint current account, personal loan or mortgage that has since been closed – then unless you take action, your credit reports will stay linked,’ explains James Jones, head of consumer affairs at Experian. ‘Rectify this by submitting a “financial disassociation” from your former partner to each of the three main credit reference agencies (Experian, Equifax and Transunion) to make sure you’re no longer connected to their finances.’
Be savvy when you apply for credit
Space out applications and use eligibility checking services to see how likely it is that you will be approved. By doing this, you can limit your applications to deals you’re likely to be granted, which protects your score.
Let your credit history mature
It’s also worth holding on to some of your credit accounts. ‘For example, holding the same credit card for five years can add 20 points to an Experian credit score,’ says Jones.
Pay on time
You probably already know that one of the best ways to improve your rating is by paying your statement on time and in full – enable notifications on your credit card accounts so you don’t miss a payment.
Register to vote
Being on the electoral register (gov.uk/register-to-vote) is an easy way to improve your credit rating as it helps lenders confirm your name, address and residential history. New registrations will usually impact your score within a month.