Your credit rating is your lifelong financial companion that will never leave your side: fortunately or unfortunately.
If you err on the side of unfortunately, then here are our four top tips to make sure your credit rating becomes a good companion, rather than a villain in your financial quests.
- Cut those cards! Stop borrowing without your means. If you can’t afford to live on your income without using large amounts of credit, then you’re not living within your means and you need to cut down on your spending.
- Stop credit searching: every credit search appears on your credit report. Too many at once, and you look desperate for extra cash—not like a good potential client.
- Get on the electoral roll. This one always surprises people, but financial institutions place a lot of importance on your electoral status. It is free and it is easy to sign up to the electoral roll: so do it!
- Always make sure that you’re using at most 70% of your credit limits. That means, if your overdraft is £2000, only use £1400 at any one time. It shows good financial conduct to your lenders—both present and future.
With these four tips, you should notice your credit rating is climbing in no time. There are swathes on literature on the topic both online and in print. If you’re struggling with your credit, then we implore you to do some investigating and get up to speed on the shady world of credit scoring.