How To Improve Your Credit Score

How To Improve Your Credit Score

Having a low credit score can massively impact your finances but not everybody knows how to change it. Therefore, attempting to gradually improve your credit score is something which you should put time and effort into doing. Although it is not something which will change overnight, if you are patient and consistent, your score will improve in no time!

Fix Your Credit Report

Sometimes there may be unexpected mistakes on your credit report which are holding you back and impacting your finances. But, unless you check, you may never know that they are even there. So, we suggest that you check over all of your credit reports at least every single year. Some people prefer to check there reports every month or so just to ensure that nothing is going wrong. After you ensure that everything on your credit score is correct you are then able to start improving your score.

To fix any information you think should not be there, you should contact the credit reporting company or the information provider preferably in writing. This way they will be able to look into the issue and hopefully change the mistake if necessary.

Do Not Make Different Credit Applications At Once

If you are applying for a loan, credit card, mortgage or something similar, a lender will check your credit report to ensure you can afford it. These are considered hard enquires meaning that they will negatively impact your credit score. If you make multiple applications at once your score may decline by even more. Therefore, to avoid this happening, you should always carefully plan out the steps in which you are going to take before making any decisions which may include hard credit enquires. Making a hard enquiry once in a while is something which may impact your credit score, but if you are careful with your finances yo will be able to increase it again.

Get On The Electoral Roll

The electoral roll is a list of names and addresses of those who have registered to vote in the UK and Northern Ireland. You may be wondering what this has to do with your credit score, but in actual fact, it is very necessary. The electoral roll is not only used to see who and who cannot vote, but it is also used for things including credit purposes. It allows lenders to identify who you are and verify a little bit more about you. This way the lenders can grasp a better understanding of whether or not lending to you is a risk.

Always Pay Back Credit On Time

Every single time you borrow credit it is essential that you repay it and repay it on time. Late repayments can lead to serious money issues which can affect not only your credit score but also your everyday finances. Although, if your credit score is low and you are able to repay everything you need to on time, your credit score will soon begin to increase. Some people struggle to keep on track of what needs paying at a certain time. So, instead of writing it down in hope, you will remember, why not set up a direct debit? If you are still struggling an option is to contact the Money Advice Service.

If you find yourself in a situation where you need a loan as you have no other option but your credit score is low, here at Simple Personal Loans we can help you get your hands what you need. At some point in our lives, we all get into some sort of financial difficulties, therefore, there are plenty of lenders out there who are willing to help people in those unfortunate situations.