Give Banks And Lenders No Excuse, Build A Credit Score They Cannot Reject

It is fair to say that more people today are now more aware of their credit rating than at any time in the past. With one in four British adults having what is to be considered to be an adverse rating, banks and lenders of all stripes are now combing through peoples ratings with a fine comb when it comes to deciding to issue credit cards or loans. Never fear however, as there are a few simple rules and tips you can follow which will help

Make sure you are on the electoral roll

One of, if not the first checks to be made is to see if you are on the electoral register. Seeming as it only takes one phone call or internet form it is a simple measure to boost your credit score, do not forget to vote either!

Are your associates with the right kind of people?

If you have a financial umbilical cord with someone, such as a joint account, loan or credit card, their credit score could affect yours. So if they have a poor rating and you share a joint account with no them, no matter if they are a business partner or spouse, it will drag down your rating at the same time. If you decide to dissolve the joint account for any reason, get in contact with the rating agencies and request a notice of disassociation so it their rating does not continue to affect yours.

Do not turn your back on defaults

If you do have defaults on your credit file but you feel they are unfair, you can make a complaint and ask for them to be removed. Speak firstly to the company who registered the default, and, if their response is unsatisfactory, complain to the Financial Ombudsman.

Only apply for credit sources one at a time

If you apply for lots of credit simultaneously, your credit score can be damaged. Lots of credit searches (the notes that are left on your credit file when you apply for loans or credit cards) in a short space of time can damage your credit rating. Apply for one card or loan at a time.

Make sure you build a credit record

What many people do not realise is that the main factor in many credit rejections is not because of bad credit, but because of a lack of credit history or thin credit. The applicant in question will not have enough of a credit history to convince the lender they can be trusted to make repayments, so having a credit line and using it responsibly even if you do not really need it is a good way to build a respectable credit score.

Stability is important

What attract lenders more than anything will be strong signs of stability, such as being in one job and not a multitude over time. This is of course not the only sign they look for, fiscal responsibility and stability shows itself in owning your own home, paying into a pension pot, insurance, car loans etc. Any combination of the above or even all will see your credit score reach the stratosphere.

Never miss a payment

Information remains on your credit file for up to six years. This means that if you do miss a payment on a loan or credit card, you can damage your credit rating for a long time. Always try to make the minimum repayments on any credit that you have and try not to miss payment deadlines.

Repay your borrowings

One of the parameters lenders use when totting up your credit rating is to look at the total amount of credit the applicant owes. Reducing the amount of borrowings you currently have to a lower level will go a long way to reassuring the lender, which in turn will lead them to give you an improved credit score.

Regularly check your credit file

Checking up on your credit score should be as normal as checkups at the dentist. Keeping on top of the information means no inaccurate information will harm your credit score and might lead to a boost every now and again. A fit and lean report will mean fewer rejections, which in turn will mean less damage to your credit score.

With the tips we outlined above, you could be looking at thousands of pounds in savings through reduced interest rates and charges. The higher your credit score, the better terms you can secure from credit lenders, so there is really no excuse for implementing these ideas, get going!