There’s no easy way out or simple fix when it comes to credit. Building a strong credit file is a long process, but one that is well worth embarking on; a good credit file will mean financial stability in the future, rendering it easier for you to be approved for loans and mortgages when the time comes. Here are some easier things that you can do to fix your credit and improve your creditworthiness:
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Pay off credit card debt as quickly as possible
The usage of credit cards is one of the main ways lenders can see how you are when handling credit – it is a readily available source of cash that can tell a potential lender exactly how you are with repayments. As a result, keeping on top of your credit card payments will help significantly when trying to fix your credit! Pay off your balance on time and (if you can) pay a little more than the minimum every month and you’ll be well on your way to becoming more creditworthy; you’re showing lenders that they can trust you, an invaluable trait to have when it comes to your credit.
Register on the electoral roll
This might be a surprising one, but being registered on the electoral roll, if you’re not already, is one of the first aspects lenders look at on your credit file to determine your level of stability. It serves as extra proof of address and your data can be checked by lenders much faster and as the electoral roll is a source of authoritative information about you, being registered makes you look a lot more reliable. The longer you have been registered for the better and be sure to keep up to date – if you have moved recently, update your details on the gov website as soon as possible. Not registered yet? Do so as soon as possible – it’s a quick way to fix your credit further!
Dispute incorrect information on your report
Sometimes information, such as a late payment, can appear incorrectly on your credit report. This would have affected your creditworthiness, so it is best to get this fixed as quickly as possible. You don’t want lenders to see you in a worse light, so getting your credit file as accurate as possible is essential – especially if the inaccurate information displayed is negatively affecting you!
Open new credit accounts – but not too many!
Showing that you can manage your finances efficiently by having multiple credit agreements -that are all up to date – is a great way to show lenders that you are trustworthy when it comes to paying bills on time. It builds a history of you making payments on time consistently which will naturally boost your creditworthiness. It is important to note that you should only take out extra credit accounts if you can afford the repayments; do not put yourself in debt and harm your credit more by taking out so many agreements that you cannot keep up.
However, this can also have a negative effect. Too many credit accounts can show a lender that you are desperate for money and cannot afford to pay for items outright, thus having the opposite effect than intended! If you want to learn more about credit account balancing, click here.
Keep track of your credit file
There’s no avoiding it, the best way to keep on top of your credit is to actually check how it’s doing! Unless you are fully aware of the aspects of your report that are hindering you from fixing your credit, you won’t know which steps are the best ones for you to take. It can be dauntingly confusing at first, but signing up to a website that will break down each factor for you into easily digestible chunks will definitely make this process easier. Luckily, that’s exactly what we at Credibble do for you!
The points outlined above are only a few of the ways you can fix your credit, and these don’t always apply to everyone. The issues people face with their credit reports are vastly varied, but at least one or more of the points above should help you along your journey to better creditworthiness.
Credibble offers two fabulous solutions
If you’re preparing to take a mortgage, never apply until you’ve tried our unique and FREE Credibble Home app. Our smart technology will tell you what you need to fix so you avoid rejection. The app predicts when you will be able to buy, for how much and tracks your month-by-month progress to mortgage success. We’ve even added your own mortgage broker, so you get the best deals available.
More focused on your credit rating? Well, get started for free with Credibble’s 24- Factor Credit Check to truly help you improve your creditworthiness and how lenders view you. (Remember: lenders don’t use your credit score! We’ll show you what lenders look for and how to get your credit report in the best shape possible).
Last updated by Robert Edwards, June 2022