Some Tips On How To Build A Credit Score No Bank Can Turn Away!

With worry about debt will come worry about the health of our credit rating, and with 25% of the British adults having information that could be classed as adverse, the chances are the ratings are not as healthy as it could be. In these credit crunching times, banks and lenders are scrutinising credit scores closer than ever, so having the best rating you can is becoming more imperative, so here are a few easy tips to boosting your score.

Make sure you are on the electoral roll

One of the major pillars of credit scoring is registration on the electoral roll; it will be one of the first checks that will be made. It is simple enough to remedy this, just contact your council and they will update the register with your details.

Associate with the right people

Did you know your credit score can be affected by those you have a joint financial stake with? From siblings, spouses or business partners, if you have a joint loan, credit card or account with anyone and they have a bad credit rating, their credit rating will adversely affect yours. If at any point you cut off the financial ties with your partner, make sure you send what is known as a 'notice of disassociation' to the credit agencies so they will no longer take this person's credit report in calculating your own credit rating.

Don't ignore defaults

Defaults on your record that you feel are unfair don't have to be permanent, try and sort out the situation with the company who put the default on your report in the first place. If this route just leads to you banging your head against a wall, go a step further by taking your case to the Financial Ombudsman to see if they can help you.

Apply for credit lines only one at a time

Applying for numerous credit sources in batches or all at once can seriously harm your credit rating. This happens as every time you apply for credit it is noted on your credit report, rejections bring down your score, so many rejections all at once is only going to compound the matter. So spread out the applications and apply one by one to preserve your score.

Always look to build a credit record

Having a history of bad credit is not the worst scenario to be in when applying for a credit line; the worst scenario is not having enough of a credit history to begin with. At least with a long history of bad credit, lenders would know what to expect and if they decided to accept, would be able to place numerous conditions on any deal. With little or no credit history, lenders will not know what they are getting themselves in for and will point blank refuse to take the risk. The best way to circumnavigate this vicious circle is get a credit line early in life and use it sparingly and responsibly (even if you don't really need) as you will soon build a credit rating to be envious of.

Stability is vital

Stability is one of the largest attractors for lenders when looking at a credit report. Working for the same company/being in a job for a long term shows steadiness that attracts lenders likes bees to honey. Other factors that can send your credit rating soaring are paying into a pension scheme, owning your own house and paying into insurance schemes etc.

Never miss a payment

Credit reports stretch back six years, so missing loan or credit cards payments regularly, or even once or twice a year can soon add up. Not only that, but the information is going to damage your report for years after, even if you do become more disciplined at a later date. So always meet the minimum repayments on your credit card at least and avoid missing payments at all costs.

Always repay your borrowings

Another of the arcane ways your score is calculated is by totalling the amount of all credit you currently owe to your lenders. It's a balancing act essentially, too little credit and you won't have enough of a report for ease lenders concerns, too much credit and they will have doubts about your ability to repay the credit. Reduce your total borrowing to a stable level with a downward trend spread over a handful of creditors to boost your credit score.

Check your credit file on a regular basis

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.

There can be no denying the fact that the steps above are simple and easy to execute, acted and followed on they could easily save you thousands of pounds through lower interest rates charged on your credit. There's no good reason for delaying the action, so get going and fire a rocket up your credit rating!


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