Sometimes we all need a bit of a helping hand financially, but it can be difficult to acquire that help if you have had difficulties with money in the past. For some people it is just not possible to go to a traditional high-street bank or lender and expect financial assistance when you have a bad credit score. In these circumstances you can research and turn to responsible payday loan lenders that can offer a short-term fix to a problem, but in all cases there are ways in which you can improve your credit score easily, over time, in order to make future applications for credit more readily achievable.
With a good credit score traditional banks and lenders will be more likely to offer you a loan, or other types of credit, and they are also more likely to offer you more respectable and enticing terms, with lower interest rates than you will be placed with should you acquire a loan with adverse credit. There are ways in which you can improve your credit score in advance of that next credit application.
Check Your Current Debts – The first thing you should do in order to improve your credit score is to find out exactly what your credit report says about you. You can check your credit score, there are ways to do so for free through trials and subscriptions, although with each of the three credit agencies in the UK (Experian, Callcredit, Equifax) you are entitled to check your credit report for just £2. Once you have your credit file go through it with a fine-tooth comb to see if there are any inaccuracies present. If you see a debt that you are sure doesn’t belong to you, or that has already been paid off, challenge it.
Clear Your Debts – This should go without saying but it is vitally important that you clear your debts, and do so by paying bills on time. Your lenders will always take into account the regularity of your debt repayments, so always ensure you are consistent and are bringing down all of your debts.
Don’t Apply if You Think You’ll Fail – Every single time you apply for credit that search appears on your credit file. This can put lenders off if it is apparent that you’ve tried a number of times to gain credit and failed. Do your research, pay off debt as listed above and be sure that you have a high chance of being accepted before applying for credit.
Register to Vote – A lender can refuse you credit if you are not listed on the electoral role at your correct, current address. And as you can see above, a refusal of credit after an application is a blemish on your credit record that should be avoided at all costs. This is an easy mistake to rectify so make sure to check you are registered on the electoral roll at your current address.
Improving your credit score is achievable with a few simple steps. It’ll make it easier to apply for credit in future so be thorough, accurate and dedicated.