How Can I Improve My Credit Rating?
Here at PiggyBank we recognise that credit files can be confusing and it is easy to make a mistake that affects your credit file.
Your credit file is a history of the last six years that includes the payment histories on any bank accounts, loans, credit/store cards, phone bills and mortgages you may have had. One missed payment could show for the next six years. Each person only gets one credit file and it is therefore important that you look after, and protect, your personal credit file.
Review your credit report on a regular basis - You can view your credit file for free at Credit Karma, or with UK Credit Ratings. Your credit file will likely be assessed whenever you apply for any type of credit and it is important that you understand yours to ensure it is up to date and accurate. Any mistakes could be harming your credit score.
Keep up to date with your repayments and try not to pay late. Lenders realise you may not have a perfect credit rating, but still want evidence that you will make repayments on time and that you aren’t already overstretched. If they see a patchy credit history that shows missed repayments or bad debts, it suggests that you struggle to manage credit effectively.
Register to vote at your current address. Lenders often use the electoral roll as a precaution against fraud, to check that you live where you say you do. Make sure you are registered to vote at your current address.
Close unused accounts. Close unused credit accounts if you no longer require them. Lenders can take into account the credit limits available to you, not just what you currently owe.
Don’t make too many applications too quickly. A lender may check and leave a credit search footprint on your credit report each time you apply for credit. Avoid making several applications close together as this could be a sign of financial hardship to lenders which stays for six years.
Reviewing your credit report and score can help put you in the best position when applying for credit, as well as alert you to identity theft.
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