A Credit Score takes a while to build up and you must be consistent to see real benefits. Most negative items on your credit score will disappear after seven years, but good debt – credit that you’ve handled well and paid as agreed, is good for your score. Here are our top tips that can help to move your score upwards:
- Keep credit card balances at least 30% below their limit – the trick is to pay down those balances and then keep them low. You could talk to your credit card provider about making several monthly payments if this helps you – little and often.
- If you have lots of credit cards or loans with small balances on them, consider paying them down or consolidating them into one loan. Credit scores will take into account how many cards/loans you have. A 1Plus1 Guarantor Loan can be used to consolidate a number of different debts. We offer loans between £1,000 and £10,000 over a 12 to 60 month repayment period.
- Limit the number of times you apply for credit in a year and if you are applying, do so over a short period. Each time you apply for a loan, credit card etc, it causes a small reduction in your credit score that lasts a year, but this doesn’t usually kick in until 30 days after you have made the applications. The reason for this is that if you make multiple applications for credit, it usually means you want to use more credit. This doesn’t apply to mortgages, car and student loans – you can apply for these as many times as you like, and it won’t usually affect your score.
- Pay your standard monthly bills on time every month – this is a big determiner of your credit score. If you’ve got savings and you can’t meet your monthly bills – use your savings.
There are numerous factors that affect your credit rating, but one simple action will help your credit score – registering to vote.
The reason is that being on the electoral roll provides reliable proof of address to Guarantor Loan companies like 1Plus1 Guarantor Loans and reduces the risk of the application being fraudulent.
You aren’t automatically registered to vote when you turn 18. You have to apply, but it’s easy to do so online by visiting the electoral registration website, www.gov.uk/register-to-vote.
It takes approximately 5 minutes to complete the form. You can also apply by post.
Registering doesn’t mean you have to exercise your right to vote – this is entirely up to you. But it will give you a better chance of applying successfully for credit like Guarantor Loans.
Your registration for the electoral roll won’t show up immediately, so make sure you tell us if you’re applying for a Guarantor Loan, if you have recently registered to vote. Ideally do so some time in advance of applying for a Guarantor Loan. Make sure you update the electoral roll with your new address details should you move.