Having a bad credit score doesn’t mean you aren’t able to gain finance and there are plenty of ways you can improve your score, here are our tips.
Having bad credit doesn’t have to stop you from important things in life like buying a house or getting a car. There are ways to improve a credit score so if yours has been lacking, we’ve put together a list of tips to help you. Whether you’ve been rejected from credit in the past or your score is low, here’s how you can improve your credit score to help you gain finance for the things you need.
Register to vote
One really simple way to boost your credit score is by registering to vote. If you’re not on the electoral roll then you may not have any credit at all, as this is what proves you live at the address given on the application. This is a key part of identity checks that lenders will carry out and can boost your score by up to 50 points.
Check your credit report regularly
Your credit file contains a lot of data about you that may potentially contain mistakes. If you aren’t regularly updating your report, you may make a credit application only to be refused because the information on record was wrong. You should check your information with the three main agencies (Experian, TransUnion, and Equifax) and correct any mistakes.
Stay on top of rental payments
Renters often end up paying more than homeowners but still find it difficult to prove they can make payments on time. To stay on top of this, make sure all your rental payments are made on time so that it doesn’t lead you into any issues further down the line. Forgetting a payment can lead to bad credit, even if you have the money in the bank to pay.
End financial associations with others
When you live with someone and open a joint account with them, you become financially linked to that person. This could be an ex-partner or an old housemate. If you pay bills on behalf of your housemate, don’t take the fall for their inability to keep up with payments. If you’re no longer with an ex-partner but you had joint accounts, you can ask the three main credit reference agencies to break this link so that their financial situation doesn’t affect yours.
Use ‘soft searches’ for new credit
Applying for credit means a lender will perform a ‘hard credit search’ to check your eligibility. Every time this happens it leaves a footprint on your credit file which is visible to other lenders. It’s worth asking lenders to perform a ‘soft search’ so that it doesn’t make an impact every time someone checks your credit.
Car leasing credit score
In order to lease a car, you'll need a good credit score and the lessor will most likely run a credit check against you. If you’re wondering ‘can car leasing improve my credit score?’ Just like any monthly payment such as car insurance and a mobile phone contract, car leasing can help you build your credit score by proving you are able to make regular payments on time.