Lenders need to know a lot more about you than you might imagine before they decide whether to give you any credit, so it’s important to be aware of some of the more unusual influencing factors before you apply for credit.
They’re not just interested in how much money you make, they’re also interested in lots of other aspects of your life, including how safely you take care of your credit matters, and how responsible you are when it comes to payments.
When you make your application, some of the things they’ll be looking at include:
- your salary
- your age
- how many children you have
- a history of your credit accounts
- mobile phone contracts you have had
Here are some tips to improve your credit score which you may not have thought of before.
1. Register to vote
Your political inclinations have little to do with your credit rating, but the fact that you’re registered to vote does have an impact on your rating. Being registered to vote gives lenders a proof of address. To register, contact you local council or visit www.aboutmyvote.co.uk.
2. Close any other accounts you may have.
Credit companies want to be sure that you’re capable of paying off everything you owe, so they have a look at all the other accounts. This means that they’re likely to give you less if another provider is already giving you significant amounts of credit
3. Don’t make too many credit applications
Be careful about how many applications you make, as this affects your credit rating. To lenders, a person who makes a lot of credit applications is likely to be someone that’s failing to get the credit they need – which doesn’t look good on your record
4. Keep on top of your repayments.
A missed or late payment stays on your credit record for at least 3 years. Even if you simply forgot to make the payment, lenders might assume that you’re not reliable enough to lend money to. Speak to your existing lender if you feel you aren’t able to keep up your repayments.
5. Try not to move house too often
Lenders place less trust in those that keep moving house. When you apply for credit you’ll be asked to list the addresses you’ve lived at in the last three years. Your credit report also lists addresses that you’ve been linked to.
It is also worth checking the report and your application for typos and consistency as any inconsistencies could also damage your credit score.
6. Close any joint accounts that have a bad credit record
If you’ve held a joint account with someone who has a bad credit record, this may affect your ability to get credit. The reason for this is that lenders may assume that your partner could have an influence on your income at any time.
It’s important to close these accounts and take care of any shared debt you may have. It’s also worth remembering that insolvencies stay on your records for about 6 years.