Ways to Improve Your Credit Score
In the UK, there are three credit referencing agencies that keep a file on every one who is financially active; Experian, Equifax and CallCredit. This file includes your personal information, publicly available information from the electoral roll and your credit and financial history. The Consumer Credit Act 1974 gives you the right to this information for an administrative fee of £2. So, if you have been refused credit, you can find out why and try to rectify the situation. Debtsolver are on hand to help you with this.
Maintaining your presence on the electoral roll is an important part of a healthy credit rating. These credit companies update their details from the electoral roll monthly so up to date records will quickly improve your credit score.
Don’t be afraid to challenge any information that’s wrong too. Even if your credit rating is good, you should still check the validity of your information regularly. This will also help you to catch identity theft early.
Missing payments, regardless of how trivial they may seem, can damage your credit rating too. Missed payments stay on your report for three years and might be a determining factor in your ability to secure credit. If you can foresee a missed payment, talk to the lender immediately. You may be able to arrange a payment adjustment or come to an agreement to pay the arrears at a later date. This could keep the blemish off your report.
You may feel that because you’ve never taken on any credit, your rating will be perfect. This is not the case. Lenders want to see that you can take on credit and manage it responsibly. At the end of the day, they earn by lending, so if you avoid credit, they might not see you as profitable.
If you have a credit card that offers reward points when you shop and you manage to clear the balance at the end of each month, your credit rating will improve and you’ll earn points towards your next shop.
Whenever a company looks at your file, without it necessarily being an unsuccessful credit application, it leaves a trace on your report. This can be helpful as it lets you know who’s been checking your file but it also lets any prospective lender know how often you are applying for credit. If they deem this to be too many, it can damage your rating. After being refused credit, don’t immediately move on to the next lender. Instead, talk to the company that has refused you and find out why. Before moving on to the next, try to fix the problem.
Any applications for joint bank accounts, loans or mortgages will tie you to the other person and they can affect your credit rating. This can linger on your report so have any former partners removed.
For further help in achieving a healthier financial situation or repairing your debt history, talk to one of the specialist debt advisors at www.debtsolver.co.uk.
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