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Credit Cards & Loans

Ten ways to boost your credit score

Your Money
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Your Money

Follow these tips to improve your chances of getting a mortgage, loan or credit card.

Credit cards are one of the most popular and convenient ways to pay for everyday shopping, so it is surprising that more than one in two of us are currently at risk of being declined access to credit by mainstream lenders.

It’s not just bad habits like missing one or two bill repayments that can harm your credit rating. It is surprising that of those people at risk of being declined, many are in full time employment and are perfectly able to afford to repay a credit card debt.

The fact is that a significant proportion of people who are declined credit are actually creditworthy; they simply lack a credit history or an understanding of how to achieve a strong credit score.

Being new to the country, not being on the electoral roll or simply never having had credit in the past could all harm your chance of getting a credit card, loan or mortgage.

So, here are 10 top tips from aqua credit cards to give your credit rating a boost:

1. Make sure you’re on the electoral roll – it’s surprising how many people don’t realise this is essential for a good credit rating.

2. Pay ALL your bills on time, even a couple of days late can make a big difference.

3. Ensure there are no incorrect details on your credit record – check it regularly and if the details are wrong, correct them. People often move house and change jobs without updating their records.

4. Try not to use more than 75% of your available credit limit – this is a good practice to adopt and help you avoid over spending which can result in charges.

5. Look into specialist credit card providers which help people to build and improve their credit rating – this will help if you have had problems with credit in the past.

6. Only apply for credit when you really need it. Applying for more than 4 forms of credit in a year can lower your credit rating so keep track of what you have applied for and when.

7. Do not apply for more than one credit product at a time as each application can have a negative impact on your credit rating. Patience is a virtue when it comes to credit. Waiting to hear a response from one provider might seem frustrating but applying for multiple cards could harm your score.

8. Close old credit card accounts and cancel old direct debits – they will still show up on your record if you don’t get rid of them.

9. End financial associations with ex-partners. Whilst their own credit rating won’t impact yours, taking out a product jointly with them will.

10. Do not take out more than 2 forms of credit within a 6 month period – this can make you look more risky to lenders and damage your score.