Tips To Ensure Your Credit Score Soars

Tips To Ensure Your Credit Score Soars

Having a good credit score can mean that you will find it easier to get finance at a better rate. When you want a mortgage or a new car, raising the money you want to borrow will be simpler with a good credit record. But how can you make sure yours stays as high as possible, and what can you so to stop it falling?

You cannot just sit back and think that you can ignore your credit rating, as sometimes errors or made or you could even fall prey to fraud. Look at these tips to help you maintain a good credit rating, and perhaps make it even better.

Tips To Ensure Your Credit Score Soars

 
Check Your Credit Score Regularly

It is wise to check your credit score before you apply for finance of any sort. If a mistake has been made you need to ensure it is corrected and if you have been the victim of fraud, the credit scoring company need to know that. They will adjust whatever they have to, but if you do not tell them you will make it easier for the fraudsters to get away with it again.

Checking your credit report regularly could help you to spot errors or fraud earlier, and make to easier to correct.

Every time someone checks you out it is recorded. If you are turned down because something is wrong with your records, and you apply somewhere else, you will find the same thing happens again. Multiple applications never look good to prospective lenders, so check your credit score before applying for finance of any kind.

Of course, you may genuinely have a bad credit rating. This can happen for all sorts of reasons. It could be because you lost your job or you have been off work ill, for instance. If this is the case you need to let the credit scoring company know this, as they will mark the reasons on your record and tell anyone that checks you out. If there is a genuine reason why you fell behind with your monthly payments, often that will not be held against you. You can still get loans and things with bad credit, but it is more difficult, which is why you need to keep a close eye on it. Knowing where you are will really help you out. Just don’t obsess over it as that could lead to problems!

Have Some Credit At Least

Having no credit score can be as bad as having one that is not good. The whole idea behind credit ratings is to give lenders confidence about the likelihood of any money they lend you being repaid. If you have no credit score they will have no idea whether you will be a good or a bad payer.

You have to realise that you are no more than a name to the financial institutions, and ask yourself would you lend a complete stranger any money without knowing if you were likely to be paid back?

No one would ever suggest that you have credit just for the sake of it as that can become costly with the interest you have to pay on top. However, you could have a credit card and pay the balance in full every month. That will not cost you any money and will show that you take your financial commitments seriously.

Credit histories only go back 6 years and anything older than that is wiped from your records. If you defaulted before this length of time, you do not have to let that ruin your current credit score.

Have Automatic Payments So You Don’t Forget

Set all your payments up to happen automatically so that you do not default just because you forget one. Just remember that a payment can reach an organisation one day but it can take another 2 or 3 days to reach your account. Therefore, your automatic payments should always be set up to be made a few days before they cited payment date.

In some ways, the more credit you have, the better your score will be as long as every month the bills are paid when they are due. Paying debts off early helps as well.

Make Sure You Are On The Electoral Roll

When lenders are looking at you, one of the things they will want to know is that the address you have given them is correct. They can check this out by looking at the electoral roll, and you should make certain you are on it for your address. It is updated every year, which is why in the meantime lenders will ask you for previous addresses. If you show on the roll there, they will assume you are being honest about where you live now.

Credit scoring companies check out the addresses you have provided automatically, and this will be something that can make your rating drop if they cannot confirm that you reside there.

Businesses Have Credit Scores Too

It is not just individuals who have credit scores, businesses have them too. Gone are the days when a couple of references from existing suppliers were enough. The problem was that a business would only ever give the names of people they had always paid on time, and there could have been far more that they had not.

Lenders need to know that they are as likely to be repaid by as business, just as with individuals. Sometimes, there are different things accounted for, and they will also apply for things such as references from the businesses bank.

Business owners need to take just as much care to keep their credit rating good though, or when they need a new piece of machinery or some new road vehicle’s, they may have trouble raising the finance.

How New Technology Has Helped

Just 30 or 40 years ago, it was much more difficult for financial institutions to get an accurate credit report. Everything was recorded by hand, and it could take several weeks for something to be updated. New technology and computers have altered that and now records are updated and reports provided instantly.

Every time someone checks your report, you start a new credit agreement, or make a payment late, it is on your file very quickly and your credit score is altered accordingly.

*This post contains collaborative content.

About Dawn McAlexander

Dawn is a full time travel and lifestyle blogger. Besides Cheap Is The New Classy, she also owns and writes for EatPlayRock.com, an entertainment site. Her interests include traveling, home decor, DIY projects, organizing her home and enjoying a nice cup of coffee {or two}. She currently resides in North Carolina with her dog, Daisy.

Comments

  1. Maddie Hamilton says:

    I’m so glad to found this blog, as I’m eager to learn more about this realm, and how I can stop my credit score from falling. Many thanks for sharing, I will definitely use these learning for future references.