Whether we like it or not, we have created a world where credit is compulsory. It is directly related to our ability to get a loan, finance a home, buy a car, and much, much more. If your credit is poor, it can impossible to get out of the hole and increase your score. This isn’t true, however. You have to be steadfast, but knowing how to raise your score and implementing your knowledge can make a big difference. Get familiar with what you should avoid and what you should pursue to increase your score in the United Kingdom. The UK differs from the US and other countries, here are some of the ways to get a higher credit score.
Credit in the UK
Understanding how to increase your credit score is synonymous with understanding the conditions in your country. Credit scores are the representation of our financial worth, and it is a game we all have to play. Modern credit has changed, but it is still the same basic concept. If you pay back what you have borrowed or owe, you are more financially trustworthy.
However, credit is different in every country and the UK is no different. Comparing the country to the US, quite possible the credit capital of the world for better or worse, there are some key similarities and differences. For example, two of the three major credit bureaus are the same but the third, TransUnion in the US and Call Credit in the UK, are different.
Simple Tricks to Improve your Score
Criteria in the UK has to do different factors as well. First, if you register to vote in the UK your credit score will improve. This is one simple way to increase your score. Even if you don’t plan on voting, registering will raise your credit standing. Court records of bankruptcy also make a bigger difference in the UK than in the US. If you make an effort to remove any negative court records from the past, your score will go up.
Your account data from your bank, utility companies, and building societies also affect your credit. Do your best to keep these details positive and try to get unflattering details removed. In the US, it is much more cut and dry, but the UK offers more comprehensive ways to raise your score.
What the three credit bureaus think of you is very important. Many people take their score as a face value, but, as it turns out, credit bureaus are made of people and people make mistakes. Check your reports regularly to make sure errors are corrected.
Furthermore, it is key to limit the amount of credit applications. Each one has an effect on your score, so only apply for credit when you are sure that you will get it. Another way to increase your score is to sever ties with people who may be negatively affecting your score. For example, if you were recently divorced, your spouse’s financial status is probably changing your own.
Dos & Don’ts
The golden rule of credit is to always pay back money you owe, and to do it as soon as you can. According to MoneyPug, a site used to find cheap personal loans, you should look for the lowest interest rates should you have to take out a short-term loan. Paying these loans back immediately is key because they stay on your credit history longer than most loans.
You should never pay the minimum amount per month. The faster you pay off loans, the quicker your score will improve. In fact, if you take out loans and pay them back quickly, your score may even become better than before.
There are basic fixes to make your credit score better, but it really comes down to paying back the money you owe as fast as you can. However, knowing the situation in the UK is key. There are more ways to improve your credit. Credit is more comprehensive in the UK than in the US and you can improve it by paying attention to all of the associated factors. Research, diligence, and thoughtfulness will help you find what you need to do to increase your credit score and keep it where it needs to be.
