Advice and Tips // 18 August 2016
Your credit score plays a big part in some of the major financial decisions in your life, such as buying a house or considering financing a bigger family car. Here’s how finance companies decide to offer car finance. Here are a few tips to help improve your credit scores.
It’s obvious, but it’s the most simple and most effective way. When you make your last payment your score improves by over 80 points putting you in a different lending / payment bracket.
Many don’t realise that you need to use less than 30% of your limit on each card. So, if you have a £2,000 limit you should only be charged £600 on it each month even if your balance for the month is paid. Ideally keep it under 10%
If you need to apply for a new card or loan, take a look back at enquiries you’ve made. This also goes for credit checks for credit scores, applying for new cards and requesting balance increase. Yes, companies do detailed checks on enquiries.
When you receive that much-deserved pay rise or now have a second job, you should update your income information. This can mean a higher credit limit and a better method to keep balances where they should be.
Rather than closing old card accounts keep them active. Pay the card off on a monthly basis for small purchases like the Netflix or Sky subscriptions.
This one is obvious! Pay off smaller accounts immediately. For larger accounts that need to be paid keep a record of payment dates.
Don’t be afraid to dispute issues on your reports. Human errors occur daily, if you’ve made a mistake in any calculations and the payment was inaccurate or you’re paying late, you may be forgiven ONLY if communicated as soon as possible.
Keep the information in your application forms consistent. Having different information on forms can look fraudulent to anti-fraud agencies. Keep details such as mobile numbers and email address details consistent.
Bankruptcy stays on your record for six years and one year on new applications. So be a little patient on the next application.