How to improve your credit score
Improving your credit score to get car finance
A strong credit score is a key element in getting car finance. Lenders look out for a good credit rating as it is evidence that you are financially reliable. A high credit score indicate to lenders that you’re less risky.
Whether you’ve got a good or bad credit rating, there are always ways to improve or maintain it.
Our Tips for improving your credit score:
Register on the electoral roll
When you register to vote, It helps lenders confirm your name and address, this then increases your score.
Make current payments on time
By paying any recurring payments on time it shows lenders that you are reliable and has a positive impact on credit scores.
Avoid your credit card limit
Use the credit card to around only 30% of its limit. A lower percentage is likely to increase your score.
Use your overdraft sparingly
Try to avoid using your overdraft or not frequently. Overdrafts appear on your credit report as debt.
Keep credit applications to a minimum
Try to avoid applying for credit frequently in short spaces of time. It makes lenders think you rely too much on credit.
Avoid payday loans
Avoid payday/short-term loans. They can be tempting during financial emergencies but are expensive and some mortgage underwriters reject people who have taken one.
Settle any credit disputes
A default is when you should have made a payment and didn’t. If you think the default is incorrect, it can be disputed.
Financially delink
If you separate from someone you had joint finances with, you don’t want their credit history to affect yours. Ask for a notice of disassociation and close any joint accounts and pay off joint loans.
Check your credit report annually
Familiarise yourself with your credit report once a year or before any applications. They contain a lot of data on you but there could be errors. You will want to be aware of any issues and correct them before applying.
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