Many of us are aware of our credit scores and how important they are, but not all of us consider the things that could affect or make changes to improve them. Unless we are at the stage of an application for lending, and then it might be too late. Our credit scores can be the difference between an acceptance for a lending product or a decline, or in some cases, a more expensive rate of interest. So what can you do to improve it? Here are some tips that could help.
Give yourself time
If you know that you will need to apply for a mortgage or a remortgage, or even any other lending product, then start thinking about your credit score sooner rather than later. Remember that the more time you have to correct it or improve it, the better chance your application has. It might take up to three months before things are recorded on there, so giving it as much time as possible, for example, six months will help you make the most out of the changes you will implement.
Focus on debt
Debts are often the big problem when it comes to credit scoring. They do work in your favor in one respect as they show that you can pay things back, not miss payments, and show history. But, if you do miss a payment or the percentage of debt versus your available credit is relatively high, this can negatively impact your credit score. If you can, from the point you want to make changes avoid ever missing a payment. The next thing would be to reduce your debts as much as possible. If you can, try and pay more off than the minimum. Look at the debt that is costing you the most money, and pay more off it each month. The more you can increase the amount of available credit you have, the better position you will be in with your credit score.
Check the records
The next thing you should be doing would be to check the records held on your credit report. This can also impact your score. You need to ensure that all the addresses associated with you are correct. There are no records of debt or problems with credit recorded on your account that don’t belong to you, and check your financial associations. This might be ex-partners such as a wife or husband you have divorced. They may negatively impact your score as they may have a bad credit history. If you are no longer financially associated with them, you can ask them to be removed. The same with records that are not belonging to you. If you spot these, then there may have been an incident of identity theft. So you might need to investigate this further.
Make sure you are registered at your current address
Finally, make sure that the correct details are registered on there, including your current address and the details of accounts you have. The more accurate information that is on there, the better your score will be. It can also help lenders to make a decision.
Let’s hope these tips help you when it comes to improving your credit score.