Boosting your Credit Score

Looking to get a mortgage this year? A good credit score could make you eligible for larger loans, credit cards and more importantly, more mortgage options/deals.

Here is a quick guide on how you can boost your credit score.

Update your information

• Make sure your bank details are correct
• Correct any mistakes when checking your credit score
• Make sure your address is correct – this is particularly important for when credit checks are run. If you lived in multiple addresses and haven’t updated your address on all of your information, this can present some issues.
• Ensure if you separate from a partner, you update your joint financial records too
• Cancel any unused or old credit or store cards
• Register on the Electoral Roll in the area you are living in

Using a credit card

• If you want to build a credit score, it can be useful to use a credit card little an often. Only spend what you know you can pay back each month. A popular option is for a credit card which is only used for petrol each month.
• Shop around for the best credit card option for you. Some offer rewards, cash back, balance transfers etc.
• Make sure you pay your credit card payments on time
• Make sure you are in control of your credit card – if you have a joint credit card with a partner or housemate, make sure your credit score isn’t brought down by their spending habits!

Avoid too many applications

• Do your research and find out what you are eligible for before applying. Too many declined applications can have a negative effect on your credit score
• Ask for advice and be clear on why you are taking out a credit card
• Before applying, use an eligibility calculator to avoid being declined
• Refrain from pay day loans – this can really affect mortgage applications in particular

Be patient

• Building a good credit score doesn’t happen over night
• Keep up with any monthly payments via credit cards, direct debits or subscriptions
• Create a budget plan for each month to account for any monthly payments

It’s a good idea to check your credit score from time to time just so you know what you are working with. There are various ways you can check it, but some of them might affect the score itself.