Your credit score depicts your creditworthiness. The higher the score, the better you, as a borrower, will look to potential lenders.
There’s no magic number when it comes to a ‘good’ credit score. Different companies will be looking for different things in potential customers, so while you may be one lender’s cup of tea, you may not tick all the boxes for another.
There are plenty of things you can do to help improve your score, but it can take time and will-power!
Here’s our three top tips:
1. Register to vote
When you register to vote, your electoral details are recorded on your credit report. This data helps lenders confirm your identity, so your score will increase as a result.
An easy fix, but be aware, it may take a while for your electoral registration to filter through to your credit report.
2. Build your credit history
Your credit score can be negatively affected if you have little or no credit history at all.
Whilst at the outset having zero debt is a good thing, it doesn’t help your credit score if there is no record of how well you can handle debt.
• Keep a low percentage utilisation of your available credit. It is usually seen in a positive light and should help your score go up. Don’t max out your credit accounts and cards, stay well below their limits.
• Always repay your credit accounts in full and on time each month.
• Take out a small form of credit such as a small cash loan or mobile phone contract. They’re usually easier to get accepted for but can still demonstrate your ability to pay your bills on time and be financially responsible.
3. Limit your applications for credit
Each credit application you make will record a hard search on your credit report.
Companies can see this, so it’s a good idea to space any applications out as lenders may view you as overly reliant on credit, and therefore a higher risk!
Firth Finance considers all applications for credit on an individual basis, even if you have a low credit score.
Once we receive your details, we will base our decision on the results of both a credit check and/or an affordability assessment. We consider your incomings and outgoings to make sure your loan is manageable and affordable.
We make it easy to apply online, with a straightforward application process and a decision available in as little as 24 hours.
Please note, applications can only be accepted from residents of Northern Ireland.