Five best ways to improve your credit score
- Register to vote
- Build a credit history
- Keep your credit utilisation low
- Check for errors or mistakes on your credit report
- Keep older accounts open
- Recap: Improving your credit score this year
Your credit score influences your ability to borrow money. The better your credit score, the easier it is to borrow money, and the more likely you are to access that credit at a more affordable rate. While you can’t control all aspects of your credit score, there are some things you can do to improve it. So, with that in mind, here are the five best ways to improve your credit score in 2023.
Register to vote
The simplest and easiest way to improve your credit score is to simply register to vote. You can do this by registering on the electoral roll at your current address. Whether you’re living with your parents, sharing accommodation, or living in a home that you own, registering to vote is a super important step when it comes to improving your credit score.
Build a credit history
If you’re new to the UK or if you’ve recently turned 18, you will need to build a credit history before you are given a score. What does this mean? Well, it’s a bit like the chicken and the egg situation – if you don’t have a credit history, you will struggle to borrow money. But how do you build a credit history if you can’t borrow money? Helpfully, you can take steps to build a credit history. For instance, using a credit card and paying it off on time is a great way to build your credit history. Getting a mobile phone contract and paying on time is another option.
Keep your credit utilisation low
One of the biggest factors in determining your credit score is your credit utilisation ratio. For instance, if you have a credit limit of £2,000 and you are currently using £1,500, your credit utilisation is 75%. Wherever possible, keep your credit utilisation below 30%, as this helps when credit bureaus look to calculate your credit score.
Check for errors or mistakes on your credit report
Unfortunately, credit bureaus sometimes make mistakes on your credit report, which unfairly negatively impacts your credit score. Thankfully, you can request a copy of your credit report and check it for errors. Should you identify any, you can write to the bureau and ask them to make the necessary corrections, which can result in an improvement in your credit score.
Keep older accounts open
When you stop using a bank or building society account, it can be tempting to close it. However, keeping it open is a great way to show that you can successfully manage multiple accounts, even if you’re not using it on a daily basis. What’s more, credit bureaus look to your history of borrowing and using money, so the longer you have had accounts, the better your credit score is likely to be.
Recap: Improving your credit score this year
Although it’s impossible to control all aspects of your credit report and subsequent score, there are some simple steps that you can take to improve your credit score this year. Improving your credit score makes it easier to borrow money at an affordable rate. If you’re looking for an affordable form of credit to help you spread the cost of an upcoming purchase, we offer unsecured personal loans for a range of purposes, and you can use our loan calculator to find out how much you can borrow today.
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July, 15, 2022
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