28th March 2020
A credit score is a three-digit number compiled by credit score agencies and is based on all the financial transactions that you’ve made, including things like bank accounts, credit cards, utility bills, loans, county court judgments, bankruptcies and IVAs.
Credit scoring is used by lenders to predict how likely it is that you’ll repay your mortgage or other loan and whether you’ll make your payments promptly. It can also affect whether or not you’re approved for a mortgage and the interest rate you’ll be offered.
There are several ways you can improve or repair your credit score to maximise your chances of being offered a good mortgage deal.
- Check your credit score online – the three main UK credit reference agencies are Experian, Equifax and TransUnion (formerly Callcredit) – and rectify any mistakes.
- Keep all your personal and financial information up to date and ensure it’s correct.
- Make sure you’re registered to vote – you can do this online at https://www.gov.uk/register-to-vote.
- Avoid making late payments or missing payments as they’ll stay on your credit file for six years.
- Don’t apply for lots of credit at once.
- Avoid moving home too much.
If you have any questions about your credit score and/or your suitability for a mortgage, talk to our team of expert mortgage advisors and we’ll help with the answers you need. Call us on 08454 500200 or click here to make an enquiry.
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