Tips for Building Credit
The better your credit, the better competitive rate you will get on a loan.
The details in your credit file can be accessed by lenders when you apply for a loan. It shows them information about your financial history, for example your record of paying on time, your total debt, whether you’ve been bankrupt.
Here are a few tips for improving your credit score.
If you have never used credit, then your file will be empty and potential lenders won’t be able to work out whether you are safe to lend to or not. This affects your chances for any kind of credit, including a mortgage loan or even a mobile phone contract. Therefore, you need to work at building a credit history. A good way to do that is to get a credit card. You cannot qualify for any of the best credit card deals without credit, but some of the products are aimed at those with little or no credit history. The interest rate will be high, so you should pay your balance in full every month to show you can manage credit responsibly.
Many lenders will check to see if you are on the electoral role at the address you provide to avoid identity fraud. If you are not registered to vote from that address, you’ll find it harder to get credit.
Make sure your file shows that any Country Court Judgments have been settled and ask the court to inform the credit agencies. Outstanding CCJs can badly affect your credit score.