Credit score: How to improve your credit rating – 5 simple tips for financial security

Your credit score is usually a number between 300 and 850, and the higher the number the better your score. Your credit score is based on your credit history, such as the number of open credit accounts you hold, your total debt and details of your repayment history. Your credit score helps determine whether lenders will grant you services such as loans or a mortgage. has collated some of the best tips you can consider which may help you improve your credit rating.

Register for the electoral roll

If you’re not on the electoral roll, you may struggle to get accepted for credit.

The electoral roll is where many credit reference agencies obtain information about you, such as when verifying your identity.

You can apply to join the electoral roll on the Government website.


  • Credit rating: How long do defaults stay on my credit score?

Pay off your debts

MoneySavingExpert explains how you should never miss or be late on any credit repayments, as this can harshly affect your credit score.

The website states: “Even if you’re struggling, try not to default or miss payments because it can have a disproportionate impact.

“Doing this once or twice could cause problems that can cost you for years.

“Defaults in the previous 12 months will hurt you the most.

“The easy solution is to pay everything by direct debit, then you’ll never miss or be late.”

Financially de-link

If you previously had joint finances with someone such as a partner, and are no longer together, you should de-link your finances from them.

If your finances were linked to another person, unless you de-link from them their credit history will continue to affect yours.

This process entails writing or speaking to credit references agencies and requesting a notice of dissociation.


Coronavirus debt tsunami ‘inevitable’ unless relief given – ANALYSIS
Credit score: Does being a guarantor affect my credit score? – EXPLAINER
Debt free: Briton reveals how they eliminated debt in four years – INSIGHT


  • Will a mortgage holiday affect my credit score?

Consider a credit card

If you want to improve your credit score, and you can be responsible and repay any debts, you could consider a credit rebuild card.

If you have a poor credit history it may be difficult to obtain a credit card, but a credit rebuild card may be an option.

MoneySavingExpert explains: “This is a card with a hideous rate, say 35 percent APR, which accepts people with a poor credit history.

“Yet provided you repay the card IN FULL each month, preferably by direct debit, and never withdraw cash, you won’t be charged interest, so it’s no problem.

“Then just spend say, £50 a month on the card, and provided you have no other issues after six months or so, things should start to improve. After a year, it should make quite a difference.”

Space out credit applications

Applying for credit multiple times over a short period could negatively impact on your credit score.

MoneySavingExpert states: “Every time you apply for a credit product (be it a credit card, contract mobile phone, car insurance paid monthly or more), it adds a footprint to your file for a year.

“Too many, especially in a short space of time, can trigger rejections as it makes it look like you’re desperate for credit.

“Therefore, space out applications if you can and don’t do them frivolously.

“In fact, it’s almost worth thinking about applications as ‘spending’. Is it really worth spending an application on what you’re doing, or could you save it for something else?”

Source: Read Full Article