Six Easy Ways to Improve Your Credit Score

A poor credit score is often the biggest stumbling block when it comes to securing credit. Though improving your rating can feel like a daunting prospect, there are some simple steps you can take to start seeing progress sooner rather than later. Here are a few tips to get you started.

Use your credit card responsibly

Using a credit card at all might sound risky. You’re looking to improve your financial situation, not get into more debt, right? Well, charging small amounts onto an active card and paying it off quickly is actually one of the fastest ways to boost your credit rating. As long as you stay well below your spending limit and always meet the minimum charges on time, it shows prospective lenders that you can be trusted to budget sensibly and honour your repayments.

Get registered

Credit reference agencies carry out various checks to see how ‘safe’ it is to invest their money in someone. Having a registered home address and being listed on the electoral role are great ways to make yourself appear both visible and stable. It only takes a few minutes to sign up, and you can do so here.

Pay off existing debts

If you’ve got old debts hanging over you, you could look into getting a small loan. Like with a credit card, meeting your repayments promptly is a great way to prove yourself a reliable investment. By using the funds to pay off creditors, you can also reduce the financial strain you’re under, which reflects well on your credit score.

Keep your credit report updated

Any old or inactive accounts still listed as ‘open’ on your report could be needlessly dragging your rating down. It’s definitely worth reviewing your details regularly, keeping your information up-to-date.

Spread out your applications

A mark appears on your report every time a search is carried out on you by a prospective lender. If lots of these show up within a short space of time, it makes it look as though you’re desperate for a quick hit of cash. This instantly implies you’re in bad financial standing, and will lower your credit score. Space out your applications instead, and your efforts will look sensible and considered.

Carry out your own checks

Before you send off a full credit application, check a lender’s terms and conditions online (some will even have a simplified eligibility checker). If it looks likely you won’t meet their requirements, don’t bother applying. The fewer searches and rejections on your report, the better. Apply instead to the lenders most aligned with your needs, and you maximise the chances of success.