The Great British credit score, we all have one as soon as we turn 18 years old but not everybody has the same type of score. There are many things that influence your credit score, which all work together to show your worthiness and reliability to lenders. When it comes to your credit score, there are many mistakes that people make that negatively impact it. In fact, there are a few simple steps that you can take to improve your credit score quickly and easily.
One of the biggest oversights that many people make is to not be included on the Electoral roll. The Electoral roll is quick and easy to join and can be done online. If you want to be able to vote in local and general elections, then you need to be on it anyway but if you are not, this will lower your credit rating. The reason for this is that the Electoral roll confirmed your identity and shows that you are a real person. This makes it easy for lenders to verify your identity when you apply for credit, such as payday loans or short-term loans.
Another mistake that people make is to not check their credit report regularly. As with everything in life, mistakes do happen and you may have a negative mark on your credit report that shouldn't be there. You should always check your credit report at least every quarter to make sure that everything is up to date and in check. There is no need to pay to view your credit report as there are many free providers such as Noddle and Clearscore. Your credit report will also show you when credit searches have been performed, allowing you to make sure that nobody is trying to take out a loan in your name.
Applying for too much credit can also impact your credit score as every time a potential lender searches your credit report a footprint is left. In fact, having too much credit available to you can also make you undesirable to lenders. This means that if you have £7,000 available on a credit card that you have not used, you may actually be ruining your credit reputation. Lenders like to see that customers are using the credit that they have been given and are paying it back on time. If you have a large amount of credit available to you, then the best thing you can do is close down the account.
The last mistake that people make is to not make use of credit at all. Taking out a payday loan or a short-term loan, such as those arranged by Flex Repay UK can help build your credit score and show potential lenders that you are a reliable and trustworthy customer. As with all types of loans, you should always pay it back on time and in full to keep your credit score as high as possible. The higher your credit score is, the easier it is to obtain credit with low-interest rates.