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Four simple ways to improve your credit score

The better your credit score the more access you will have to lower interest rates on mortgages, loans, and other financial borrowings. Whilst everyone’s credit store will differ, there are lots of things that can lower your score. Here are some of the most common ways of boosting your score.

Errors on your credit file 

Everyone should review their credit files, and with many companies such as Experian or Credit Karma giving out free trials to their software, it’s now easier than ever to review your report in detail. By looking at this in-depth you’ll be able to deep-dive into what’s affecting your score. If something doesn’t look right, you should investigate further. This could be, borrowing that you don’t recognise, cards you paid off that still show as being used. Whatever it may be, you should firstly contact the lender directly, then speak to the credit reference agency you use.

Remember to cancel your trials if you plan to, and it’s a good option to review your score every month.

Not being registered to vote 

Being registered to vote is possibly the quickest and easiest way to increase your credit score as it does help financial companies confirm your identity. It also gives lenders the confidence they will be able to reach you at the address listed. You can register to vote here 

Little or no credit history 

Even though lots of debt is bad for your credit score, none or very little credit history will limit what you are able to borrow. One of the ways to fix this is to apply for a credit-builder credit card. These will offer you a small credit limit that is easy to manage. Use for a few months, stay within your limit and repay the balance each month, and in full before applying for a loan or mortgage.

Late or missed payments 

When payments are late or missed it is recorded on your credit file and remain there for six years, even if you have repaid the outstanding balance. A lender will view these errors as financial mismanagement and is unlikely to offer additional finance options. Set up all repayments on a direct debit to ensure they are paid on time and with the correct amount. You can still make additional payments towards clearing the debt.

Taking action to resolve points like these will not only improve your credit rating but also show lenders you are financially responsible.

If you are worried about your debt, or how your credit score may impact on your planned borrowing — such as a mortgage — get in touch with us to see how we can help at info@aspirefinancialadvisers.co.uk.