When you’re looking to take out a mortgage or a loan, your credit score can determine if lenders approve you and what rates they offer.
But what if your score isn’t up to scratch? You’re not alone, and there are steps you can take to improve it.
Though it may seem like a slow process, even small changes can have a meaningful impact over time.
Get on the electoral roll
One simple and often overlooked way to boost your credit score is by registering to vote. Lenders use the electoral roll to verify your identity, and not being listed can negatively affect your score.
Registering is straightforward – simply visit the government website and fill in your details. It doesn’t take much time, but it can make a significant difference.
Fix your credit report
Your credit score can be affected by mistakes on your report. These errors might range from incorrect personal details to accounts that you’ve paid off but still show as active. It’s important to check your credit report regularly to ensure all the information is accurate.
You can do this for free through services like Experian, Equifax and TransUnion. Contact the relevant credit reference agency to correct any inaccuracies you spot. Even a small mistake could be impact your score, so it’s worth checking.
Use a card strategically
Using a credit card can be a smart way to build your score, but it’s important to use it wisely. If you have a limited or poor credit history, using a credit card builder can improve your score.
Aim to make small purchases each month and pay them off in full, which will help show lenders you’re financially responsible. Avoid maxing out your card or missing payments, as these can harm your score.
Address debt in collections
If you have any outstanding debt in collections, it’s essential to address it, as unpaid debts can seriously damage your score. Services like StepChange offer free, impartial advice on how to deal with debt and create a manageable repayment plan.
By settling outstanding debts or negotiating reduced payments, you can remove these negative marks from your credit report, which stops them from holding back your score.
Improve your score, improve your future
Improving your financial rating is a process that requires patience and attention, but with consistent effort, you can take positive strides. If you follow these suggestions, you’ll be well on your way to improving your financial health.
Remember, small changes over time can produce meaningful results – so start taking action today, and you’ll better opportunities for your future.
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