Credit Score Tips

Whether you’re a first-time buyer or a home mover, a high credit score can make a huge difference when applying for a mortgage for your new home.  

What is a credit score?

Your credit score is based on how you’ve handled money in the past. It is a three-digit number that reflects how reliable you are when it comes to repaying. The higher your credit score, the better your chances of being accepted by a lender, and at the best rates.

We’re sharing our top tips on how you can help boost your credit score and increase your chance of approval with lenders!

 

Tip 1 – Check your report

Any mistakes, even small ones can affect your score and result in a lender refusing you. Checking your credit report is easy to do, and you can do this for free online. Make sure to check the details of any agreements, as well as your personal details, such as middle names, date of birth, and address spellings.

You can check your credit report here with Experian for free.

 

Tip 2 – Register to vote

A quick and easy tip is to make sure you are registered on the electoral roll at your home address. You can even do this if you are living in rented, shared accommodation or with family. This helps lenders verify who you are and proves your address. The longer you are registered on an electoral role the more benefits it has on your score!

 

Tip 3 – Build your history

You could be declined by a lender, not due to unfavourable credit history, but simply because you have a lack of credit history. If you haven’t had credit before, the lender has no way to know if you’ll be reliable at repaying it back. This is especially common for younger people. A way to overcome this is to use a credit card to pay for monthly expenses such as food shopping or fuel. However, you need to pay this in full each month and make sure you don’t miss any payments. This shows the lender you are consistent with repaying debts!

 

Tip 4 – Boost your score

Creditors understand there are more ways than repaying a monthly debt to show you are dependable. Open banking allows you to link your current account to a credit referencing agent (such as Experian or Clear Score). They can scan your account and boost your score for things like making regular savings and paying standing orders.

Whether you’re already looking for your new home or hoping to move soon, there’s never a better time than now to start working on the health of your credit score.

We hope these tips help! If you’d like mortgage advice or to have a credit check, you can always speak to one of our expert advisors to help you.

Call us on 01543 464 144 or complete the contact us form below.