It can be important to try to keep our credit record looking good and you may be in a position where you are worried about whether yours is good enough. You may wonder what you can do to improve it.
What are People Looking for in a Good Score?
Your credit record will be looked at by potential lenders, landlords and employers and they will judge you based on it. Unfortunately, there is not a standard way that they all do this which means that there is a certain amount of guesswork involved. Some will want to see that you have a perfect record and have always repaid and paid everything on time but some will be happy to give a little because they may be happy for you to miss a few payments as they can then charge you more money and that will make them more profit. It can therefore be a little difficult to know what to do to impress. However, there might be a few things that will help.
What Can Potentially Improve it?
It is wise to check what your credit report says and make sure that it is correct to start with. You may find that there are some mistakes which could make you look worse, such as if you have completed paying off a loan, then it may show you still have it or it may show you missed a payment when you did not. So, look out for that and make sure that all of the information is correct on it everywhere else as well.
Make sure that you are on the voter’s role. You may not want to vote and you do not have to even if you are on it but a lot of companies will check this for the purposes ID checking and so if you are not on it, that will show on your credit record and it will put people off.
Make sure that there is a record of you making regular payments or repayments. This might be for a loan but alternatively could be utility bills, insurance and things like this. A potential lender or landlord is likely to be impressed if they can see that you are making payments regularly as it shows that you are capable of doing this and more likely to be able to make the payments that they will need you to make from them. If you do not do this, then get you name added onto some of the household bills to show that you do this but only if you are sure that they will always be paid on time. It can be worth making sure payment goes out automatically by direct debit or standing order and then you will be sure that it will be paid on time every time.
If you have a lot of loans then it might look more favourable if you pay off some of them. It could look like you will not be capable of repaying another loan or paying rent if you already have a lot of loans to pay. Therefore, if you do not have so many or do not owe so much on each of them, then this could look a lot better.
Make sure that you do not apply for lots of loans too. If you get turned down and then try another then this will not look good. It will seem like you are desperate for money and it will put off potential lenders. Try to find out from a direct lender whether it is likely that you will get accepted before applying and only apply for those that you are confident that you will get.