Credit Score

What is a credit score?

Put very simply this depicts your creditworthiness, the higher your score the better. When you look to take out a loan, mortgage, credit card, etc a credit check will be performed and they will base there opinion on your score.

How do I improve my credit score?

By default you will start with no credit score, I have complied a list below which will advise on ways to improve your credit score:

Credit cards

• Credit cards have this bad persona around them, but when managed effectively credit cards are excellent to build your credit score.

• Providers will offer a raise/auto increase limits on their own terms, its rare you actually go and ask for an increase and they give it. Also, You don't have to pay it off early, you just need to make consistent payments (over the minimum amount) off towards it

Paying bills

• Even if you haven't left home yet, you could put your phone contract in your own name. These all help to demonstrate that you are able to pay bills every month.

Electoral Roll

• Lots of people don't know this, but registering for the Electoral roll actually boosts your credit score! This is super easy to do and really makes a difference.

What should I avoid doing?

Credit Cards

• Do not spend over 50% of credit card limit, or this would reduce your score.

• Do not put lots of small purchases on the card, instead I would advise using your credit card just for petrol.

Bank accounts.

• DO NOT create/apply for multiple bank accounts (Barclays, Natwest etc). When applying for bank account/loans they will often do a Hard Search, this effects your credit score massively. Hard searches will be lifted after many months, but it has a big impact on your score.

Payments

• Missing any payments whether its a loan, credit card, phone contract etc this will have a knock on impact on your credit score.