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Tips for improving your credit rating score

It’s important when running a home and looking after a family that your credit score is a positive one so you don’t run into trouble when it comes to securing a mortgage, taking out a loan for home maintenance or even a ‘buy now pay later’ credit card in the holiday season.

Many of us don’t even consider our credit rating and have never checked it before but regret this decision when it comes to taking a loan for something important. A poor credit rating can block plans and projects by limiting us financially.

There are numerous ways to help you get your credit score back in check. You might know that you have the financial capability to pay back any debts but that one poor decision or late payment in the past has upset the balance on your rating sheet and banks will scrutinise any little discrepancy to avoid lending out money.

Thankfully, the Money Advice Service has created a simple info graphic, featuring some great tips on how to improve your credit rating and get back on track for the future. It also has a useful online mortgage calculator to help with managing what is, for most households, the single largest monthly expense.

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5 Responses to Tips for improving your credit rating score

  1. I applied for credit for the first time in 3 years in October and my credit score slightly dropped. I was a little upset about it, and was shocked. I plan on buying a home next so trust me I will keep what I have, and delay what I want.

  2. I’ve learned that just spending wisely and not getting into debt and making on time payments work for me. I’ve seen my credit score slowly but continuously increase over the years. I do nothing special, just pay my bills on time and stay out of debt.

  3. moneystepper says:

    Is cancelling unused credit cards a good way to improve your credit score? My understanding was that this would increase your ratio of credit used vs credit available which would actually reduce your credit score. It would also reduce your average length of credit which again would decrease your credit score.

    What is the argument for cancelling unused credit cards from a credit score perspective?

    • You’re right. The only time cancelling credit cards is a really good idea is when someone literally can’t control themselves with credit spending. In general, it’s best to keep the cards open and ideally use them occasionally. It is better to keep that buffer on your debt to credit ratio.

  4. Due to many many bad financial decisions in the past, my credit rating was almost non-existent. In the last 16 months I’ve tried to make steps to improve this by checking my credit file on a monthly basis, making sure all my details are correct and making sure there are no missed payments etc

    Checking it this morning I can see a slight improvement but nothing to shout about. I suppose that shows it’s quick to get into the brown stuff but a whole different story when you try and drag yourself out of it!

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