Unfortunately, your credit score isn't an easy thing to change, at least in the short term. For a high credit score you'll need to show that you pay on time each month, using different types of credit accounts. You'll need a stable address history, and to not have taken out too many new accounts in the recent past. It's not the kind of thing you change overnight, as a lot of the factors that influence it take time to show effect. However there are a few things in your power that you can do, which will contribute to improving your score. Here's how to go about it.
CHECK YOUR FILE
First thing first, get a copy of your recent credit report and go through it with a fine tooth comb. Be sure that nothing is out of the ordinary and that you recognise everything on the account. If anything raises any concern, be sure to query it. Sometimes errors or even fraud can lead to your credit score being affected.
MAKE TIMELY PAYMENTS
It goes without saying that missed payments, defaults and CCJs will all have a hugely negative affect on your credit score. The most important thing you can do to keep it in ship shape, is to make at least the minimum payment on time each month. If you do have any adverse credit it will take six years to 'drop off' your credit file, however you'll be pleased to know that the longer ago they were- the less of an impact they will have. For example, a default which happened in the last month has much more of an effect than one from four years ago.
PAY DOWN BALANCES
One of the factors that plays a role in your credit score is how much of your 'available credit' you have used. For example, if you have a credit card, a loan and a store card with a total limit of £5000- and you have used £4000 of this then you have used a lot of your available credit. It's recommended that you don't use more then 30% of your available credit, any more could have a small impact on your credit score. If for example you're going to make an important finance application such as a mortgage or car finance, it could be worth paying down the balances to below 30% if you're in a position to do so.
GET ON THE ELECTORAL ROLL
Make sure you are on the electoral roll at your current address. Often people get turned down for credit not just due to their score but because of fraud detection. Being on the electoral roll helps to establish that everything is legitimate, and could well be the difference between being accepted and being turned down.
GIVE IT TIME
Finally, try not to obsess over your score. Just make sure you're doing everything right and eventually your score will go up. The nature of a credit score is to show how well a person pays everything and manages their credit over time. So it's not something you're able to rush. Keep an eye on it for fraud purposes but know that improving it is a long process.
Do you regularly check your credit score?
