Our top tips for improving your credit score

First-time Buyer | April 30, 2024

For more information speak to one of our brokers

Find your local broker

A good credit score matters for so many reasons. Your credit score essentially tells would-be lenders whether you are a good or bad risk, which will affect just how successful those applications for credit cards, loans and car finance are. Your credit score can even dictate if you’re a suitable candidate to climb onto or up the property ladder.

In fact, whether you’re looking to use a 100% mortgage to secure a property or have a hefty house deposit to hand, your credit score can directly impact not just your chances of approval but the deal you’re eligible for. We’ll let The Balance explain more:

“If you don’t have good credit, the lender will consider it risky to give you a mortgage loan. If you’re approved for a mortgage, your credit affects your interest rate. Interest rates directly impact your monthly mortgage payment, by either increasing or decreasing the amount you are charged. Low credit scores will cause a loan application to be disapproved, or approved at a higher rate.”

The credit score you have right now however doesn’t have to stay that way. With a little time and effort you can change your fortunes, and increase your chances of securing the mortgage product you need to proceed with your property purchase. Here we detail the changes you can make now to improve your credit score in the not so distant future.

Register on the electoral roll

Registering on the electoral roll takes minutes and will improve your credit score in no time at all. You can register online, and will only need to do this once to ensure you can vote in elections or referendums. If you’re already registered, you can use the same service to update your name, address or nationality.

Always pay on time

A good credit score shows that you are a responsible borrower. So, if your credit score is low or there’s room for improvement, making sure you pay your bills on time all the time is important. With regular payments, you can prove that you are capable of doing the same with the repayment of any other credit you acquire.

Manage your current credit

The amount of credit you currently use will also impact your rating. While having credit, rather than no credit, is good for your rating, utilising a very high amount of credit or being at the very top of your limit for a longer period can have a negative effect on your score. With this in mind, applicants with lower credit utilisation – ideally 30% or less – tend to have better credit scores.

Don’t be tempted to close any old accounts or credit cards that you don’t use either. These older accounts and their activity help lenders establish how you manage credit across a longer period, which can improve your credit score further.

Monitor your credit file

Credit agencies like Equifax, Experian and TransUnion make it easier than ever to manage your credit history, meaning full transparency and no nasty surprises or rejections.

By actively monitoring your history, you can positively impact your credit report. You can also review your credit file for any errors or fraudulent activity and report these mistakes to keep your credit history as accurate and up to date as possible.

Been busy working on your credit score? Get started with your mortgage search with a little help from us. Speak to your local mortgage advisor today to discuss your next steps.

Latest Publicity

Find your local advisor

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. A typical fee is £295. Ask for a personalised illustration. The Mortgage Bureau is a trading name of A.M. Mortgages (UK) Ltd. Authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some aspects of Buy to Let mortgages.

This website uses cookies to improve your experience. By continuing to use this website, you agree to our use of cookies as described in our Privacy Policy.