| With banks and lenders being very selective on who | | | | applications within a small time frame, then this is taken |
| they are willing to current lend to, the importance of a | | | | into account and could have negative impact to your |
| good credit score is ever more important. | | | | score. |
| From a mortgage, credit card, secured/unsecured loan | | | | 6. Change of personal circumstances |
| or some sort of purchase that requires credit or even | | | | If your circumstances change, then you can place a |
| a cellular phone contract, the information held on your | | | | Notice of Correction on your file, explaining the |
| financial file will used to consider if your application is | | | | background if you run into any arrears on a repayment |
| accepted. | | | | of a loan. A lender will review this when assessing any |
| For people with less perfect scores or limited history | | | | credit applications in future, so this will help validate any |
| such as new graduates, then there are ways to help | | | | problems you were experiencing previously. |
| improve the rating and increase your chances of a | | | | 7. Try to avoid spending the maximum possible on |
| loan or card. | | | | your credit card limit |
| 1. If applicable, have you registered to vote? | | | | Avoid exceeding 30% of your card limit. If you |
| Many companies use the electoral roll to verify | | | | frequently reach this limit, then it may be viewed |
| individuals and to confirm identity. Make sure you are | | | | negatively by lenders. |
| registered to vote at your current address. | | | | To avoid missing monthly card payments, try setting up |
| 2. Do you have any current loans? | | | | a direct debit or standing order with your current |
| Banks and lenders look at past history when | | | | account to avoid late payment fees as well as being |
| considering applications, therefore, having prior or | | | | marked down for missing the payment. |
| current loans will be looked at more positively than | | | | 8. Shut down unused bank accounts or cards |
| someone who has never had a loan or mortgage, as | | | | Make sure you close down any accounts or cards |
| there is no proof the individual is capable of keeping up | | | | that are not used as this is used by lenders to consider |
| their loan repayments. | | | | potential debt liability. |
| The most competitive credit card deals are normally | | | | 9. Pay off early |
| only available to those with good score ratings, so | | | | Trying to make early payments on loans or cards will |
| without a blemish free rating it will be difficult to qualify. | | | | be looked at favorably by other lenders. |
| However, taking on a slightly uncompetitive card to | | | | 10. Additional items |
| build your history may be a possible option if looking at | | | | The length of time in the country as well as income |
| the longer term. So as long as you clear your monthly | | | | proof and employment status are other major factors |
| balance, then there will not be any interest charge - so | | | | on credit scores. |
| in theory a quick and easy way to build history for a | | | | 11. Credit Score Quiz |
| future larger loan. | | | | Take the test to see how banks and lenders may |
| 3. Make sure your credit score is correct | | | | consider your rating: |
| If you find difficulty with loan applications or purchases | | | | A. Registered to vote at your current address? |
| that require a good rating, then it may be worth | | | | YES=10, NO=0 |
| checking if the details are correct. You can contact a | | | | B. Have at least two active credit accounts? YES=10, |
| credit reference agency to check for any inaccuracies. | | | | NO=0 |
| 4. County Court Judgments (CCJs) or bankruptcies | | | | C. Credit account payments up to date? YES=15, |
| For any settled CCJs or elapsed bankruptcies, then | | | | NO=0 |
| ensure it is recorded correctly on your rating as any | | | | D. Missed any payments on your credit accounts in |
| open CCJs/bankruptcies will adversely affect your | | | | the last 2 years? YES=0, NO=10 |
| score. | | | | E. Any County Court Judgments or have been |
| 5. Don't go over board with loan applications if you are | | | | declared bankrupt? YES=0, NO=25 |
| rejected by one lender | | | | F. Defaulted on a credit agreement before? YES=0, |
| Each time you make an application for a loan, the | | | | NO=25 |
| lender will search your file and this will leave a residual | | | | G. Applied for more than two items of credit in the last |
| 'footprint' for future lenders to see. If there are many | | | | six months? |