USEFUL GUIDE 1 – How to Improve your Credit Rating
Mortgage Advice in Hull & Beverley
How to improve your credit rating – 10 things you can do today to improve your Credit Score
Love it or hate it – Credit Scoring is here to stay and will have a major bearing on whether you will qualify the mortgage you need.
It’s worth noting at this point that every Mortgage provider follows their own credit scoring policy so just because you are declined by one High Street Bank it doesn’t necessarily follow that they will all say no.
It’s important that the information held about you by the various credit referencing agencies reflects you in the best possible light to give your mortgage application the best possible chance of success.
Here are our Top 10 Tips for things you can do right away to improve your credit rating:
1) STOP! Until you have registered with one of the credit referencing agencies to check your score the first thing you need to do is STOP applying for new items of credit. Be careful using price comparison websites too – something as simple as comparing car insurance on-line can register several unwanted credit searches.
2) Check that you are on the Voter’s roll at your current address and that your name is spelt correctly. Being on the Voter’s roll is really important so please don’t miss this step.
3) Mortgage Lenders like you to have some “active credit” so having a credit card that you use regularly and pay off in full each month will really help over time.
4) Further to point 3, your score will drop if you regularly run close to the maximum limit on your credit card or go over the limit so this needs to be avoided.
5) Check that your address history is keyed correctly. Quite often we see a “crossover” where it appears applicants are living at 2 addresses at the same time. If you live in a flat or apartment ensure that the layout of the address is consistent.
6) If you have any credit or store cards that you are not using you should cancel these. Please note that this could have a short-term negative impact on your score but it helps in the long run and also reduces the chances you’ll fall victim to fraud if they were ever to be stolen.
7) If your score is low and you want to know whether the things you are doing are improving your score you should consider subscribing to one of the credit referencing agencies for a few months.
8) Ensure that any active credit you have is registered at your current address not a previous one.
9) Sometime there can be disparities between what information the various credit referencing agencies hold about you so it’s a good idea to take a 30 day free trial with more than one to check for any inconsistencies.
10) Ask the credit referencing agencies to remove any links you have with ex-partners.
Please give us a call to discuss your credit rating and your mortgage options and we will be happy to help!