Having a good credit score is very important for most people in life. Whether you’re looking to apply for a loan, a mortgage, a new car or even just a big purchase on credit, it’s vital that you have a good credit rating to be considered for any of these and other types of credit.
If you have a bad credit score, you will be turned down by most companies when applying for credit, or if you are accepted you’ll usually have very high interest rates. Ouch!
Below I have 4 of the best and easiest ways to improve your credit score.
But first, you need to check your credit score!
Before you start working to improve your credit score you need to first check your credit rating to get an idea of where you’re at right now, and then monitor it over time as you’re actively working to improve it.
I’d recommend using GiffGaff to check and monitor your credit score. It’s free for life!
1. Electoral Roll Registration
One very easy and powerful way to increase your chances of being approved for credit that most people overlook is to simply get listed on the electoral register, right over here.
The electoral roll is a public list containing the names and addresses for everyone who is registered to vote in the UK. It’s only used for elections, preventing and detecting crime, and checking applications for loans and credit. It’s very important that you get listed.
I got declined for everything until I got on the electoral roll. Do it right now.
2. Catalogues with Credit Accounts
Catalogues that offer credit accounts are already very popular among consumers in the UK as they offer a great way of spreading the cost on large purchases to avoid losing a large amount of money in one go. But they’re also great for improving credit with regular payments.
I wrote a post containing 4 of the best catalogues for bad credit in the UK. I have listed the catalogues from that post below, and I have used all of them myself in the past.
Your available credit limit will vary from catalogue to catalogue, as well as your current circumstances, and it will increase automatically as your credit improves.
Set up direct debits in your account to avoid missing any credit repayments.
3. Credit Cards
If you have poor credit you will probably find it difficult to get a credit card with the major players, but below I have listed the credit card companies most likely to approve you with poor or bad credit so that you can start working to improve your credit score over time.
Don’t use credit cards as a method for long-term borrowing. Instead, use them for single purchases when you need something and then pay it off the following month.
The credit cards I have listed above both provide you with a quick eligibility check that takes 60 seconds and won’t show up on your credit record so make use of that before applying.
Set up a direct debit to avoid missing repayments, and don’t hit your credit limit.
4. Mobile Phone Contracts
A mobile phone contract is another great way to improve your credit rating over time, and most of us get our phones this way anyway so consider this before buying a phone outright.
I personally use EE for the free yearly upgrades and fastest 4G in the UK.
Make sure the mobile phone you apply for is affordable. Remember that you will be in a contract for 12-36 months usually and missing payments will damage your credit score.
Credit Building Tips
Improving credit can take a very long time. You have to be patient as well as consistent and make sure that you never miss any repayments on any of the accounts you take out.
You cannot improve your credit rating with normal household bills. Things like council tax, gas and electricity, water, broadband and tv subscriptions are not shown on your credit profile.
Things to remember when building credit:
- Close any credit accounts that you do not currently use
- Always use direct debits to make payments to avoid problems