How can I improve my credit score?

28th March 2020

Tips for improving your credit score

If you were about to lend someone a large amount of money then you’d want to know that they are responsible, capable of paying it back and aren’t hiding anything below the surface, right?

That’s why lenders look at credit ratings to help decide whether to a) lend you money b) how much to lend you, and sometimes c) how much interest to charge.

Given this, there are a number of ways to prove you are a trustworthy individual who can manage your finances responsibly, and are able to pay back what you borrow. If you can clearly prove that you have a good credit score, then you’ll stand a better chance of getting the mortgage deal you want, and ultimately will be able to borrow the maximum amount to help you buy the house of your dreams.

1. Check your credit score

The first place to start is to find out how good or bad your credit score is. There are various companies out there i.e. Experian, Equifax, Callcredit, who can give you your credit score. This will be a thorough report of all your credit accounts, including outstanding loans and any missed or late payments over the last six years, as well as any other people who are financially linked to you.

2. Show an account history

Start by proving you have a good history when it comes to managing your finances. Having a history of bank accounts e.g. a current account, savings accounts, ISAs, credit card etc. will give your mortgage adviser a decent history of your credit to look back through.

3. Declare your address

Lenders will need to see proof of your name and address in order to trust you are who you say you are. Register on the electoral roll and make sure all of your bills are registered to your current address. This way, everything is easy to trace back to you and confirms your identity.

If you’d like to find out more about improving your credit score, talk to our team of expert mortgage advisers on 08454 500200 or click here to make an enquiry.

 

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Out of 6 different Mortgage Adviser companies, Luke W from Charters was the only one who actually took the time to help us. He got us our Mortgage in Principle and was very helpful throughout the process. He offered solutions with absolutely no negativity, whereas others were telling us to sell our cars and wait until after the pandemic! With a baby on the way waiting is just no option for us. He really knows his stuff when it comes to shared ownership and we have no doubt that if the housing association accepts us, he will do everything he can to help us with the full mortgage application. We highly recommend Charters Financial Services and Luke is a credit to the Company.

Karl H

August 2020

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