Improve your credit rating by following the Road to Good Credit

*This is a collaborative guest post

If you want to be accepted for a mortgage, car finance or a credit card, it is vital that you have a good credit score.

Many of us do not think about our credit scores until we need them, leading us to loose out on the best deals, or in some cases, not being accepted for credit it at all.

Did you know that those with good credit scores are offered the best interest deals, and end up paying lower repayments than those with a bad credit score?

Stoneacre Financial Services provides finance to those who are looking to buy a car, and like all finance providers, use credit scores to determine how much to lend people.

Stoneacre have created this handy infographic, the Road to Good Credit, to help borrowers improve their ever-so-important credit rating.

Here are Stoneacre’s tips:

Check your credit report

You can’t improve your credit rating if you don’t know where you stand in the first place! Even if your score is low, checking it means you can start to take the steps to improve. You can obtain a copy of your credit report from many online services, and under the Data Protection Act 1998 you can request a copy for just £2, avoiding the costly monthly payments some companies demand.

Fix any problems

There could be mistakes on your credit report that are affecting your overall score. By contacting the necessary parties you can ensure all of your information is up to date and correct.

Stay still!

Once all your details are correct, stay in the same house, and try to keep all of your details the same. Better yet, get a landline phone number too, credit companies like this as it further connects you to your property.

Register on the electoral roll

This helps credit companies find your address and it will eliminate any suspicion of fraud.

Apply for credit

Apply for a credit card, use it and pay it back in full. Do not apply for lots of credit at once as this can look desperate or can be viewed as fraud.

Never use pay day loans

These high interest loans do not give the impression that you are a reliable lender, and they can get you in debt. If you must borrow a sum of money temporarily, see if you can lend from a friend or family member.

Never miss a payment

Missed or late payments will stay on your report for seven to eight years, so make sure you always pay in full and on time.

Sever any negative financial ties

Other people’s bad credit can affect yours, so make sure you are not financially tied to anyone who is harming yours.

Get a mortgage

If you manage to get a mortgage, this is a sign to other lenders that you are an attractive borrower. Basically, if you are trusted to lend such a large sum of money, you must be trustworthy.

Get married

A bit of a cheeky one, but if you get married to someone who is responsible with their money, their good credit score could help improve your own.

Take a look at the infographic and have a think about what you need to do to reach a good credit score.

The Road to Good Credit Infographic

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5 Comments

  1. January 20, 2016 / 6:13 pm

    All great tips and very useful. So important to get this right and you just never know when you’ll be in need x

  2. January 21, 2016 / 10:13 am

    Really good advice! It was when I got my first mortgage I realised the importance of credit. Unfortunately because I used my ex boyyfriends name on my mortgages (just to increase earnings not because it was half his) he became part of my credit report. Took me years to get him off it because my credit rating was always really good, while his was awful. I never knew this until checking my credit score and wondering why it was quite low!

  3. January 21, 2016 / 7:00 pm

    Great post and very informative. It echoes a lot of the advice I give when talking to people about credit.

    Always worth noting that Noddle.co.uk is a free for life way to check your credit file!

  4. January 22, 2016 / 12:34 pm

    Great tips. Although our credit score is good, I’m pretty determined to manage our budgets better now I’ll be taking maternity leave for the best part of 12 months! x

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