Credit Scores: Improving Your Score

Credit Scores: Improving Your Score

Your credit score and credit report are two different things. While the credit report takes time to improve, your score is simpler. There are some things that you can do right now to make it better and increase your chances of getting the best finance and credit deals. Here are some tips to help.

Get Yourself on the Electoral Register

If you’re not registered at your address, it is very hard to protect against identity theft. Make sure you register yourself at your local property. You will soon see that your score jumps up a little. It also increases the chances of a lender saying yes because your address is confirmed.

Marry Your Boyfriend

If you’re wondering whether it is really worth it to tie the knot, it could be to improve your credit score. Marriage shows stability, which is good for lenders. However, marriage can backfire. You and your boyfriend will then be financially linked. If he has a poor credit history, it will pull yours down—at the same time, though, yours will pull his up!

Own Your Own Home

A mortgage is a clear sign that you are stable. It is also good for your credit report since you have a long term loan that you are paying off. Stability is a major factor. It means you are less likely to default on your payments, especially when something as major as a house is involved.

Real-estate-loan-house

Stop Moving Around!

If you can’t afford your own home yet and need to rent, simply stop moving around as much. Once every now and then—five to 10 years or so—is fine and natural but you will show that you are unstable in your finances if you move every year. It will also be harder to stay on top of addresses and protect you from address fraud.

Close Your Dormant Accounts

There’s no need to keep that bank account that you’ve had since you were 12 and haven’t used at all since then. Dormant accounts increase the risk of fraud and will make lenders weary, which lowers your credit score. However, an old account of 10 years or more is really good as it, again, shows stability. If you have no other old account, consider activating that dormant account and move everything into it and shutting one of your newer ones!

Have a Long Term Loan

Long term loans are really good for lenders to see your credit worthiness. You will prove that you can make regular payments over a series of months and years. This is a really good way to improve your credit score. Avoid having too many loans though; one that you are paying off is perfect.

Stop Asking for Credit Increases

If you keep applying for loans or asking for increases in your credit limit, you will find your credit score drops. You show that you are living beyond your means and it is a warning sign for the lender. What is to say that you can repay the money that you borrow?

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