3 Simple Ways To Improve and Manage Your Credit Score

*This is a collaborative post* Having a good credit score is one way of showing how reliable one is when it comes to borrowing money. Weather you are looking to take out a mortgage, a business / personal loan or purchase household furniture on a higher purchase payment plan most financial companies will require you to complete a credit check. If you fail to meet their criteria however, it could stop you in your tracks from making that all important purchase resulting in a crush of confidence and having to think of other ways to raise the funds needed. Today I thought I’d share 5 simple ways to improve and manage your credit score, mainly speaking from experience as someone who used to have a ‘poor’ credit history and rating.

Confirm Your Identity 

One of the ways a lender verifies the residential address you state you current live at when you submit an application for credit is by searching the electoral roll. One can do this if you are a UK or EU citizen and it does not matter if you still live at home or live in student accommodation, private rent or own your own home. By registering yourself on the electoral roll you make it easier for financial companies to confirm your identity.

Build A Reputable Credit History

This may be stating the obvious here but if you do not have a bank account with a manageable overdraft facility or do not have any smaller forms of credit such as a credit card, store card or a small personal loan such as a Lendgreen Online Installment Loans then how can a finance company tell if you are a responsible lender that can manage their finances.? By applying for any of the above and you pay your bills on time you will begin to build a reputable credit history that will make applying for credit easier in the future and to help you manage your spending I would highly recommend signing up for free credit reference companies such as clear score or noddle.

Try Not To Miss Too Many Payments

There will of course be occasions when life throws a curve ball and one finds themselves with an unexpected bill that needs to be paid urgently which in turn, will cause you to have to miss a monthly bill or two which is fine if a one off occurrence but do try not to miss too many payments (especially consecutively) as this can have a negative effect on your overall credit score and will indicate to lenders that you may be struggling to keep your finances in check.

There are many other ways that one can improve and manage your credit score including to ensure you keep within your available credit limit, to spread credit applications out over a period of time, check your credit report regularly for fraudulent activity and to avoid your account going into default / being issued a CCJ.