The good news is that, we operate differently. We welcome applicants with poor credit scores or no credit history whatsoever, working hard to provide affordable loans from an extensive network of specialist lenders.
Still, it’s useful to have a good credit score and avoid damage where possible. The stronger your credit report, the more likely you are to qualify for the best deals and the lowest overall borrowing costs.
So if you’d like to begin building (or rebuilding) your credit score starting right now, the following tips could prove useful:
Most lenders check whether their applicants are registered on the electoral roll for fraud prevention purposes. If you don’t appear on the electoral roll, you may find it difficult to qualify for financial products and services.
If you have a bunch of credit cards you no longer use, it’s better to close the accounts than to leave them inactive. When carrying out a credit check, lenders could be concerned by the amount of credit you already have available.
Inconsistencies and inaccurate information effectively qualify as fraud, which can have an adverse effect on your credit score. Even if it means running the risk of rejection, be 100% honest with your applications at all times.
Always consider carefully whether or not you really need another line of credit. The more credit you take home, the deeper you fall into debt and the more difficult it becomes to appeal to lenders. It’s also worth remembering that every unsuccessful application will inflict more harm on your credit score.
One of the best ways of boosting a sub-par credit score is to get yourself a credit card and use it sensibly. Spend a modest amount each month using your credit card and repay the balance IN FULL at the end of the month. This will clearly demonstrate your commitment to responsible borrowing and could help your case.
Lenders are becoming increasingly strict with the lines of credit they issue, penalising borrowers for missing even a single payment. Something as simple as paying the odd credit card instalments a few days late from time to time can have catastrophic consequences.
If you have any lines of credit you can afford to comfortably repay in full, go for it! That niggling credit card balance, the last £500 of your personal loan – anything you can eliminate for the benefit of your credit score.
Every consumer in the United Kingdom has the right to check and monitor their credit score. Rather than burying your head in the sand, it’s far better to take a look at your credit report and note where, when and how the damage was inflicted. This way, you’ll be in a better position to do something about it.
If you have a joint account with a spouse or family member who has a poor credit report, it could have a knock-on effect on your own credit score. If necessary, consider setting up independent accounts for the benefit of your credit report.
Last but not least, the more additional information you can provide to verify your current financial position, the better. After all, you could be a multimillionaire on an enormous monthly income, though still have a terrible credit score and be refused credit as a result!