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How to Improve Your Credit Score

One of the things people face when they decide to seek mortgage advice is the problem of ‘credit scoring’. The majority of lenders adopt this method of assessing your credit worthiness and it can be a frustrating experience for the consumer. What is the lender looking for? How do I influence their assessment of me as a potential borrower?

Well, it’s a toughy, that’s for sure. Each lender has its own method of credit scoring, so there is never a standard model.  Therefore one lender could refuse you, where the next one throws its proverbial arms out to you.

You can, however, help yourself by following a few rules. Rules that will help you along the way to succeed where previously you failed.

Here are a few tips.

1. Ensure you are on the voters’ roll.  This may appear strange to say the least, but it can be the difference between a pass and a fail. Lenders like to be able to identify you as a registered voter.

2. Apply for credit only when you absolutely need to. If your credit record is over flowing with searches by other credit companies this can lower your score.

3. Make sure you pay your bills on time. Even if you are late paying them by a day or two it could show up on your file, and this will affect your score.

4. Try not to overuse your available credit. Keep your usage below 75% if possible, as this will improve your score. Lenders do not like to see potential borrowers maxing out on their credit cards.

5. Close old accounts. We all have credit cards we don’t use which have nil balances. Close them and your score will be effected in a positive way!

6. Do you have an ex-partner? Make sure you end all financial associations with them. You may have old joint accounts, or joint credit cards. Close them! It may come back to haunt you if you don’t.

7.  Finally, keep a regular check on your credit record. There could be incorrect information on there that may have a detrimental effect on your credit score.

And if you are at all unsure come along for some free advice. We only have our customer’s best interests at heart.