3 Tips for Building Your Credit Score

Building and maintaining a good credit score is really important. So many things depend on a good score, from buying or renting houses, owning a credit card or getting a loan, mobile phone contracts, monthly car insurance and even opening a bank account. Understanding credit scores can be complicated if you’re not sure what you are looking for, but it is absolutely vital that you keep an eye on it and investigate anything you’re not sure about. As well as the obvious making sure you do not default on payments, there are a few things that you can do to help build and boost your credit score.

3 Tips for Building Your Credit Score

Register to vote

It’s really unlikely you will ever get any credit if you are not on the electoral roll. It only takes a few minutes to do online and you can opt out of the edited electoral register which can be used for marketing purposes. Lenders use the electoral roll to verify your address and identity, so it’s imperative that you get yourself on it. Plus – there’s no excuse for not voting then as well!

Use credit to build credit

It sounds absolutely ridiculous, but you have to ‘prove’ to lenders that you are responsible enough with credit. If necessary, take out a credit card or one of the many quick loans available on the market. Take out the smallest amount you need, use it wisely and repay it in full every month. This will gradually help to build your credit score.

Don’t apply for credit too often

Every time you apply for credit, lenders do a search on your credit file. These searches leave a footprint, which can have a negative impact. If they see you have applied regularly for credit, it’s going to flag up something isn’t quite right and you’ll more than likely get rejected. Think carefully before you apply and space them out as much as you possibly can.

 

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