A credit score is perhaps one of the most important indicators of your financial past and can affect everything from your ability to take out a mortgage or credit card to your ability to switch over your energy supplier. Through successful money management and better managing your finances, you could soon find yourself improving your credit score and building up a credit score that best resembles where you want your finances to be in future as a result of it being focused on the money trauma of your past.
While it may seem like a long road to improving the condition of your credit score, rest assured that while it can be tricky, the most important step that you can take is the first one. It is of the utmost importance to begin improving your credit rating ahead of time so that when you do actually get down to applying for a mortgage etc., you will be better equipped to do so and will not be faced with disappointment.
- Get rid of credit card debts
Debt consolidation is one of the most important things that you can do if you are looking to improve your credit score and better manage your finances and there are different ways in which you can achieve this. You can take out a debt consolidation loan such as an unsecured quick loan or a secured consolidation loan. Just be sure that, regardless of which loan option you choose, it makes for the most viable choice for you and your personal needs.
- Register on the electoral roll
If you are not already registered, make sure that you make a point to do so as you will find it harder to get credit otherwise.
- Create stability
Lenders will want to see that you are managing your money appropriately, which is why it is important that you are paying off your contracts regularly and in full. By opening up and paying an internet contract or phone contract you will be on your way to improving your credit rating.
- Check to see if you are linked to someone else
Something to keep an eye out for is whether you are linked to another person (be it a friend, family member or spouse) on your joint account and what their credit score looks like. If the person that you are linked to has a poor credit rating, it is likely that you could be affected by this.
- Do not move home too many times
One way in which you can make lenders feel more confident in working with you is if you are able to prove that you are a stable candidate for their money. Keep in mind that it will work in your favour if you are able to prove that you have lived in one address for a longer period of time.
- Check for fraudulent activities
It is vital that should you find that someone else has been using your card or you have found evidence of fraudulent activity on your card that you get in touch with your bank right away. Updating your file on this matter can really work wonders for ensuring that your credit rating is not damaged further.
- County Court Judgments
If you have any CCJ’s or are currently receiving court order for debt you should be aware that this will have a serious impact on your credit score. Similarly if you find yourself finding it hard to meet repayments, you should seek debt advice as soon as possible to resolve any issues that could make your credit score worse.