If you are a potential buyer and looking for a mortgage it is vital that mortgage lenders can access an accurate credit history. The better your credit, the wider the variety of lenders. If you are looking for a mortgage, and looking to improve your credit rating, please contact us.
5 Tips to Improve Your Credit Rating
Step 1: Roll with it
The electoral roll is a way to improve your credit rating and is one of the main sources of information for lenders and credit agencies, so it is essential that you appear on it and that your details are accurate.
To get on the electoral roll or check if your details are correct, contact your local council.
Step 2: Check your credit rating
Checking your credit rating is a small price to pay (costs £2 or less) – and it can have a big impact on your ability to take out a mortgage or loan.
If the information on your file isn’t accurate and up to date, you should request that the agency correct it. If you have missed any repayments, you can ask that a “notice of correction” be attached to your file with an explanation.
Try to space out your credit applications, as lenders translate too many as desperation. Some companies will do a “soft search”, which doesn’t appear on your credit file, therefore protecting your rating.
Step 3: Play your cards right
Cancel any cards you no longer use, and check your credit file to ensure the changes have been logged.
If you have older cards, check that the address registered is correct.
Step 4: It’s all about reputation
Use direct debits to help you pay on time (ensure that there is enough money in your account).
Avoiding credit altogether won’t give you a positive credit rating, since it means lenders don’t have access to information about your reliability.
If you are considering applying for a mortgage, then it helps to build up a relationship with the lender beforehand. Having a current account with them can help, as can making regular payments to a savings account to build up a deposit for your home.
Step 5: Land-line works fine
Mobile phone numbers do not offer stability like a landline number where credit applications are concerned, and can cause concerns over potential fraud. When you apply for credit, use your landline number.