Improve your credit score
Firstly, knowing what your credit score is and having visibility of what is affecting your score is a good start. Companies like Credit Angel provide a full range of useful services which give you full access to your credit score and rating, proved useful advice on how to maintain and improve your score, all of which can be accessed straight away by using a 30 day free trial. *
How to improve your score – Short term
These are also some immediate steps you can take to improve your credit score:
- Stop applying for any more credit – making numerous applications for credit in a short space of time makes lenders think you’re desperate for cash
- Check that you’re on the electoral register
- Cancel unused credit cards – lenders look at the amount of credit available to you as well as what you use
How to improve your score – Long term
If you have experienced issues with credit in the past, you need to show lenders that you can borrow responsibly. Over time, this will improve your credit score. Paying on time, or earlier if possible, shows lenders you are a sensible borrower.
Check your credit score on a regular basis
Credit scoring services often email you when a change has been logged on your credit history, for example, if a lender has check your profile, or if you miss a payment. So it’s good practice to log in and check your score, and see if there's anything you can do to improve it and make it the best it can be.
Use a credit-builder pre-paid card - Some pre-paid cards offer a credit-building option that can improve your credit score. This works by the pre-paid card company ‘loaning’ you a set amount, usually £60, which you agree, in a signed credit agreement, to pay back as a monthly fee of £5. 12 months of successful repayments will then be recorded on your credit report annually, if you haven't missed any fee payments within this period.
Bear in mind that all prepaid cards charge fees. For example, there may be an initial cost to get the card, 2.5% on any purchases and an extra fee to top up. It’s wise to shop around to find the one with fewer fees.
Credit-builder credit cards
You can also apply for credit-builder credit cards. These cards have a much higher interest rate than typical credit cards, so it is important to pay off the balance each month to avoid getting into debt which will damage your credit score further. These types of card have typically low credit limits.
*Credit Angel credit reports are provided by Callcredit Consumer Limited. A Monthly fee of £14.99 applies after your free trial. You may cancel anytime during your 30 days free trial without charge.