How to improve your credit score

As a mortgage brokers, we know how important your credit score can be. Use this page to assist you in gaining access to your credit report, which includes hints and tips to improve your Credit Score.

If you're planning to make a mortgage application, how can your credit score help you? Experian's Darren Beach explains:

'When you make your application, the lender will use the data & information held on your credit report, as well as other information within your application, to give you a credit score.

This will then tell the lender whether to accept you as a customer or not. Generally speaking, the higher your credit score, the better you chances are of getting your mortgage.'

This service is available on an initial 'Try it For Free' 30 days trail, post trial the service is just £14.99 a month – please note you can cancel at anytime

If you have a low score, do not despair, your report will also detail ways that you can improve your credit score. Below are a few hints and tips for you to remember:

1. Register on the electoral register - Lenders use the electoral register to check that you are who you say you are, if you are not registered, this could hamper any applications you make.
2. Pay your bills on time! - Missing or late payments can show up on your credit file and remain on your record for 6 years. Should you end up with a default or  County Court Judgement for any unpaid bills, this could seriously affect your borrowing power, therefore keep those bills up to date by paying them on time or early, if possible.
3. Keep your debt down! - Keep your amount of debt down as much as you can and show that you are in control of it. Don't use a high percentage of your available credit limit. Try to keep it below 50%.
4. Register with a credit check company - Register with Experian to check your credit file so you can make any changes necessary to improve it. Check your credit file urgently if you receive a rejection.
5. Make sure that your address is up to date - Make sure that your bank and any credit providers have your correct address. Lenders look for consistency with your address history as this provides them with confidence to lend you the money you require.
6. Put your name down on utility accounts - The greater the evidence that you borrow and repay your credit regularly, the better your credit score will be.
7. Sever old financial relationships - If you and a former partner held a joint account, you'll need to close it or transfer it to an individual account. Inform all three credit reference agencies of your new financial situation to stop your ex's credit history affecting yours.
8. Close unused credit accounts - It is important that you close any credit accounts that you don't use. In order to have a strong credit score you must demonstrate a history of being able to repay debt. An unused credit account will not demonstrate this and may in fact account against you.
9. Immediately report anything incorrect or suspicious on your credit file - If you notice anything incorrect or suspicious on your credit file, contact the credit reference agency immediately. It is important that you do not let errors go unchecked.
10. Only apply for new products when you really need them - Frequent 'hard' applications for credit can lower your credit score.

Always be as open and honest about your financial situation when speaking to your bank or mortgage adviser. Delays on mortgage applications are usually a result of undisclosed debts, however, if your mortgage adviser is aware of the debt they can offer you the necessary advice to ensure a smoother mortgage process.