How To Improve Your Credit Score Quickly
The past few years have been extremely difficult for millions of families in the UK and their personal finances. Many people have struggled to manage their money correctly as COVID-19 created a huge loss in jobs and employment. However, as society is slowly reverting back to normal, people’s engagement and determination to improve their finances are on the rise. Your credit score is an important key player within your finances. It’s something that is commonly overlooked, despite its significance, even in regards to its opportunities. When making larger transactions or monthly payments, your credit score is an element that is often viewed and considered. Therefore, we suggest that keeping your score in the best possible condition is something you should focus on in order to stay away from further issues outside of your financial bubble.
What Is A Credit Score & What Is It Used For?
Your credit score is the numerical rating based upon your relationship with your finances that lenders use to determine your reliability. Having a higher credit score makes you more appealing to lenders, as it proves that you have stronger financial management skills and are safe to lend to. Whereas, if your credit score is lower, lenders may view you as more of a threat, leading to a result of potentially higher interest rates or they may even send you down the route of bad credit loans. Thankfully, many lenders, including us here at Simple Personal Loans, offer bad credit loans to those who need them.
Taking the time to improve your credit score will only help you in a positive way. Even though you may not see immediate results, putting the effort in and working towards an increased score will slowly increase the number.
How Can You Increase It?
Your credit score is almost like your financial CV; it’s a very important piece of information that stays behind the scenes. So, trying your best to increase the score is something that is crucial when progressing on your financial journey. There are many simple ways that you can increase your credit score. Some of the most common examples include:
Joining The Electoral Roll
Joining the electoral roll offers more than just the ability to vote, it actually provides answers for many more aspects of life. The electoral roll is a long list of information regarding every single person who has registered to vote in the UK. This includes full names and addresses. Relating this to boosting your credit score, if the requirements are met through the FCA, credit agencies can purchase the electoral roll. This way, when you apply for any kind of credit, lenders are able to identify your eligibility in order to get an idea as to whether or not you are a risk. If you are on the register, lenders will view this as a benefit, as they’re able to confirm your identity.
Avoid Numerous Applications
Unlike other aspects of society, applying for multiple applications in the financial sector is never a good option. You may believe it’s boosting your chances of being accepted by a lender, but it’s not doing quite that. Numerous applications can actually be very harmful to your chances of getting accepted and to your credit score. Each time you apply to a different lender, they will conduct a hard credit check. These kinds of checks deduct points from your credit score, slightly lowering it every time. Therefore, before jumping into the deep end we suggest you do your research. This will ensure the lender you chose is suitable. This will keep your applications as low as possible and will stop your score from unnecessarily decreasing.
Remove Any Mistakes
There may be factors holding you back that are incorrect. Reviewing your credit report occasionally is essential in order to ensure the quality of your report. If you find any issues within the report, you should contact the agency immediately and inform them. Any false information, whether it seems important or not, will hold you back. Therefore, making the correct changes will quickly increase your credit score to what it should actually be.
There are hundreds of ways you can increase your credit score quickly. However, the whole process does not happen overnight. For more information regarding financial tips, click here.