Wednesday, 13 January 2016

How To Build A Good Credit Score

Having a poor credit score is no fun, You can't get a credit card if your credit score is low, You can't get a mortgage or loan if your score is low and even worse sometimes you can't even get a mobile phone contract if your credit history is bad. Each company you approach for credit or a loan will score you differently and unfortunately if they think your credit history is bad, they wont give you the credit or loan you would like. Personally my credit isn't very good, There have been times that I have struggled to pay bills on time and it has been detrimental to my credit score.

Everyone can become a victim of bad credit scoring, even those in well paid jobs. It just takes a twist of fate to turn things around and you find you have missed some payments on a credit card or you get behind on your mortgage. Even Kimmy, my 23 year old daughter has never had a credit card or a loan, and when she wanted to apply to become an Avon rep, she was refused due to her 'bad' credit scoring. There are ways to repair your credit history and hopefully I can offer some tips to help.

  • Make sure you are on the electoral roll - If you're looking for credit then the company will check the electoral register to make sure you're a genuine person and that you live at the address you claim to live at. Most people join the electoral roll at 18 anyway.
  • Borrow money and pay it on time - If you borrow money from a bank or building society, make sure its paid on time and if you have never had credit before, this is a good way to start to build your credit rating. Borrow a small amount, and repay on time.
  • Use a credit card - If you use a debit card, it won't do anything for your credit but if you use your credit card or apply for a credit card and use it, then it helps to build your credit score.  
  • Rent payments can be put on a credit score -  So if you're late paying the rent it can go against you. 
  • Stay where you live - The longer that you live at a property, the better your credit score will be. If you keep moving house, that will be detrimental to your score.
  • Get Married - Cheeky I know, but it helps to get a  better credit score when there are two of you trying to buy a product or apply for a loan.
  • Looking to buy a car? -  Try and get a loan rather than buy it outright. Stoneacre car finance can help you with this.
  • Pay your mobile phone bill on time - Other than be cut off, your credit can take quite a hit if the bill isn't paid.
Hopefully following the tips will help you to enjoy a better credit score and avoid any embarrassing moments of being turned down for credit in a store.

Do you have any idea?

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