Your credit score indicates how reliable you are as a borrower. From credit cards to mortgages and even utilities, your score affects your access to a wide range of everyday products and services.
Put simply: the better your credit score, the better the financial options you’ll have available. At the other end of the spectrum, a low credit score may shut you out of affordable credit options.
So, if you want to improve your access to credit, check out these 5 quick tips to get started on improving your credit score:
1. Register to vote
A quick and easy way to boost your credit score is making sure that you’re registered to vote. Potential lenders use the electoral register to confirm your address and identity, so if you’re not on it, they may reject your application because you seem untrustworthy.
If you’re not currently registered to vote, take a couple of minutes to register here .
2. Check your credit report for mistakes
Your credit score is based on your credit report – it’s like a financial CV, it details your history of borrowing to help lenders see if you’re reliable. You can access a credit report free from any of the three credit reference agencies (CRAs). Checking will not impact your credit rating.
You should check your credit report regularly and contact the CRA immediately to correct any mistakes you find that could drag down your score. For advice on checking your report, click here.
3. Don’t make multiple credit applications
If you’ve recently made a credit application that was rejected, don’t rush to make another one. Lots of applications in a short period makes it look like you’re struggling, so you seem riskier to lenders. After a rejection, you should wait a minimum of three months before making another application.
If you just want to compare rates from different lenders, ask them to do a ‘quotation search’ instead of a ‘credit application search’. This won’t show up on your report, so it won’t affect your score.
4. Be careful with joint accounts
Sharing a financial product (e.g. a joint current account, mortgage or loan) with a partner creates a “financial association” between you. When you apply for credit, a lender may also look at their credit history. If they have a bad score, it could damage your ability to borrow.
If you’re no longer using a joint product with an ex-partner, you should contact the CRAs to ask for a “notice of dissociation”. This will de-link your credit reports, so future applications no longer risk being negatively impacted by their credit score.
5. Never miss a repayment
When times are tight, repaying debts may not seem like a priority. But missing a repayment on a loan or a credit card makes you seem unreliable and can put a long-lasting dent in your credit score. Open communication is essential. If you think you’re going to miss a payment, let your lender know. You may be able to work out a revised payment schedule, which will have a much smaller impact on your credit score going forward.
For more top tips on borrowing responsibly, including links to affordable loan providers, check out our Borrowing page.
Or, if outstanding debts are dragging down your score, find free, expert debt advice with our Dealing with Debt page.