Having a good credit report and score can be hugely beneficial in all sorts of ways and it’s certainly worth taking the time to review it occasionally, as well as taking practical and proactive steps towards actively maintaining it.
A good credit score means you’re more likely to be approved for different types of credit, everything from mortgages, loans and credit cards to mobile phone contracts, monthly car insurance and bank accounts… so it can have a big impact on your life if your score isn’t as good as it could be.
Credit ratings show prospective lenders how risky you are as an investment when it comes to offering you credit. Your report is an indication of what your financial behaviour has been like in the past, which lenders will use to predict what your behaviour is likely to be in the future.
Lenders look at a range of different sources of information and data to make their decisions, including whether you’ve had trouble paying bills on time, what kind of products you’ve had in the past, how much you owe, how many applications you’ve made recently and so on.
The higher your credit rating is, the more likely it is that you’ll be accepted for credit and be offered the best rates…
The good news is that there is a lot you can do to improve your credit score – and relatively quickly, as well.
Demonstrating responsible financial behaviour is a great first step to take and making regular payments across your accounts on time will show lenders that you are a safe investment and able to handle credit in a responsible way.
Building up a credit history can also help increase your chances of success with lenders and increase your credit score. It can be difficult for young people to be accepted for credit as they don’t have anything backing them up that proves how good (or bad) they are at managing their finances.
By opening up a bank account and managing your income and outgoings effectively, you can start building up your credit history.
Set up some regular Direct Debit payments to ensure that your priority bills (like gas and electricity) are paid on time, although it’s important to always make sure you have sufficient funds in your account if you do set up Direct Debits or standing orders.
Avoid making missed or late payments at all costs where possible, as this can seriously count against you and if lenders have to go to court to recoup what’s owed, your ability to get future credit will be significantly affected.
Other ways to improve your credit score include checking for errors and reporting any mistakes you find. Even something as simple as a mistyped address could affect your score!
Are you looking for bad credit mortgage brokers at the moment? Get in touch with us today to find out more.
Your home may be repossessed if you do not keep up with your mortgage repayments.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
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Create Finance Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority.
Create Finance Limited. Registered Office: 35 Friar Gate Studios, Ford Street, Derby, Derbyshire, England, DE1 1EE. Registered in England Number: 09582938.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £595.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
We may receive commission that will vary depending on the lender, product or permissible factors, The nature of any commission model will be confirmed to you before you proceed. Create Finance Ltd are a credit broker, not a lender.