How To Improve Your Credit Report

A good credit report is vital for anyone – and everyone – to have. Understanding what a credit report is can be difficult, but understanding how to improve your credit score can be even harder. While some payday loans do not take your credit history as a finalising factor in their approval decision, there are a number of finance options that will reject your finance application if you have a poor credit history. In fact, a poor credit history can make things like getting a mortgage almost impossible – so it is important to consider how to start improving your credit report. Fortunately for you, we’ve put together some top tips to help!

Eliminate Existing Debt

Many people are unaware that missed and late payments can stay on your credit report file for a maximum of six years, which is why it is vital that late payments which occur as a result of circumstances beyond your control are still made promptly when you notice the error. This applies to late payments for utility bills, including electricity and gas. Don’t panic if this happens. You can get in touch with your credit provider and discuss getting this black mark removed – after all, it wasn’t your fault! However, if it was your fault, eliminate what you owe as soon as you can. But, don’t fret. You can use a credit rebuild card to build history and remedy past issues. Because credit scoring focuses on predicting your future behaviour based on your history, you need to build a modest recent history to prove that you are responsible with credit, and are able to use it well. To stay away from debt altogether, avoid using credit cards unless you really have to!

Don’t ‘spend’ your applications – too often

Each time you apply for a credit product, no matter whether it is a credit card, car insurance or mobile phone contract, it adds a footprint to your credit report – for a year. If too many of these ‘footprints’ appear in your file in a short period of time, you may be rejected as it looks like you’re in need of credit. The best way to ensure this doesn’t happen is to space out applications as best you can. Most importantly, if you are rejected, check that your files are correct immediately, otherwise, you may risk messing up your score as a result of making more searches.

Check For Fraudulent Activity

If you’ve ever checked your credit report and found an error in it, you have probably experienced a flush of panic. Whilst it may be an accidental error, in more serious cases, you may have become subject to fraudulent activity. If something looks suspicious, you should turn to the provider the error was associated with. If they deny that they have any record of the error and everything looks in tip top condition on their side, contact the credit reference agency who will review the error and make the relevant alterations after a full investigation.

Register To Vote

We like to believe you have, but if you haven’t, sign up to vote immediately because if you’re not currently on the electoral roll, it’s highly unlikely you’ll get any credit at all – even just a smidge! It’s easy, and you can apply at any time. Simply visit Gov.uk and follow the instructions on screen. You’ll be asked a series of questions to help identify you, and will be told the local electoral borough you need to register with. Before you go ahead and click register, make sure you have your national insurance number to hand.

Financial Links

When it comes to credit reports, don’t let your partner’s score put yours at risk! If you are financially linked to someone on any product, it means that their files can be accessed and scanned as part of whether credit card companies accept you. So, if your partner has a poor credit report history, keep your finances rightfully separate to ensure you can sustain good credit. Similarly, if you have recently split up from someone; remember to financially delink to stop their credit report history significantly affecting yours in the future! Also consider that while several people believe they have a “joint” credit card, this is technically not true, nor does such thing exist. It’s just one person’s account, with a second access card.

Generic advice is not a service regulated by the Financial Conduct Authority.