How to Improve Your Credit Score
Credit Scores Are So Important
Years ago many of us didn’t give our credit score a thought, however nowadays, whether it be because of the media or due to the fact that so many of us now get products on credit, we have become a nation almost obsessed. However this is a good thing, and we should all be very conscious of what our credit score is, and we should all be taking care of our finances in a more responsible way. Why? Because if you have a less than perfect credit score you will find it very difficult to obtain credit for the essential things in life like a car, or a mortgage. Fortunately companies like Compass Vehicle Services only lease vehicles to people who have been turned away by mainstream companies. Although we love to help our customers, we are also keen for them to get back up to a better credit score for the future.
Here our some of our tips on how to improve your credit score for the future
No matter where or who you are living with make sure you are registered on the electoral roll. This proves where you live and that you are traceable – an essential part to obtaining credit.
Make sure you make your payments on any credit you have on time and if you can the full amount owed. This will show on your credit history that you are able to manage your money responsibly and you are not a risk to the lenders.
Keep Credit Usage Low:
If you have a credit card for £3,000 and you are using £1500 of that credit your utilisation is 50%, try to use less than 50% if you can as this is seen positively by companies looking to give you credit. The ideal percentage is around 25.
Build Your Credit Score:
If you are young and have not had many items on credit, then you will not have a credit history for the lenders to see. This has a negative effect as then do not know how you are with your finances. Build your credit history responsibly in small and manageable amounts. Keeping full payments made on time every time.
High Credit Scores:
The higher your credit score, the lower the risk you are. Because the higher your score indicates you have a strong history of sensibly managing your finances / credit making repayments on time. This means you will be offered better rates on any credit you may apply for. Be warned however, every time you make an application for credit (unless indicated otherwise) this has a negative effect on your score, each time a company does a ‘hard credit search’ on you.