Simple Ways to Improve your Credit Score
Improving your credit score is a good place to start if you’re hoping to boost your financial literacy or save up for a mortgage. Capital One UK has shared these simple tips if you’re unsure where to begin…
1. Make sure you’re on the electoral register: Even if you’re not planning to vote, getting yourself registered is important for your credit score. You should use your current address, even if you’re living in shared accommodation or with your parents
2. Make regular timely payments: Pay your bills on time and in full, including anything you have on Buy Now Pay Later, as this shows lenders you’re reliable and capable of handling credit. You can make sure you’re making payments on time by scheduling direct debits.
3. Check for errors on your credit report: Even small errors can impact your score. Things you should look out for include a typo in your address or a debt that has been paid off but is still showing as outstanding. If you spot a mistake, you should ask the provider directly.
4. Get alerts when your credit score changes: This can help you manage your credit score and monitor for any fraudulent activity. Fraudsters can use your details to take out credit in your name without you being aware, be careful.
5. Keep your Bank accounts open: The longer your current account and credit accounts are kept open, the more likely a lender will see you as able to manage your finances. You’ll often be rewarded for having long-standing accounts, so it’s worth considering the long-term effect.
6. Think about your credit utilisation: So if your Credit card has a limit of £1,000 and you only end up using £500 of that, your credit utilisation score would be 50%. The lower this percentage, the more positively it will be seen by lenders
7. Avoid moving house loads: Of course, this isn’t always possible, but if you can you should try to avoid moving every couple of months. The longer you are at an address, the less likely it will influence lenders’ decision to offer you credit
8. Try a credit builder credit card: One of the biggest barriers to getting a good credit score is having little credit history. An option here is to get a credit builder card and improve your chances of being offered credit limit increases by making your monthly payment on time. Apps like
9. Manage your overdraft well: Although some bank accounts have 0% interest rates on their overdrafts, it’s important not to dip into these regularly if you want to keep a good credit score. An overdraft is seen as a loan, and going over your arranged overdraft limit.
10. Research before getting a credit card: Whenever you apply for a credit card or Buy Now Pay Later service, it can leave a search mark on your credit report. Too many searches can reflect badly on your credit score and lead to rejection
