Applying for a mortgage, credit card or loan? Taking out a new mobile phone or energy contract or even paying car insurance monthly? Opening a new bank account? Then you’ll want to make sure your credit score is in tip top condition! Why? Because a credit rating helps the lender decide if you are their idea of a trustworthy customer.
‘People should think of their credit report as their financial CV. You wouldn’t apply for a job and let an employer look at your CV without first checking to make sure it’s up to date and paints the best picture of your suitability for the role – so don’t apply for credit before giving similar attention to your credit report,’ says James Jones of Experian.
How does it work?
Whether you’re applying for a store card, a mortgage or a buy now pay later scheme, the lenders use different methods to calculate your credit score. The higher the score the more likely you are to get credit with the lender and, equally important, you’ll also get the best possible rates on financial products.
If your credit score isn’t great, you may still get the money but on less favourable terms, eg it could cost you more in the long run.
Keeping an eye on your credit score should be a basic for good money management.
If you get rejected for credit by one lender, it doesn’t mean they all will reject you. Different lenders look for different things and will score you differently. Credit blacklists are a myth, but if you’ve had a poor credit history or problems it will be harder for you to get credit.
Get to know your credit report
It’s free to check your files by law and it’s important to do this regularly to make sure there are no inaccuracies. Try and check at least two of the three agencies as they won’t hold identical information about you.
Some lenders will do a ‘soft search’ or ‘quotation search’ on your credit file to tell you if you qualify and what the rate will be. This isn’t added to the data kept about you for all lenders to see. Ask the lender or use Moneysavingexpert’s own free eligibility calculator.
What to check…
You may not realise it, but if you open a joint bank account or take out a mortgage with your partner or flatmate, you become ‘financially linked’ to them. If they have a bad credit rating, it could impact yours too so keep your finances separate.
If you split up, divorce or move out, close all joint financial products, and let all three credit reference agencies know. Otherwise, your ex’s financial dealings could still have an impact on your credit score!
Close old accounts
We’ve all got them cluttering up purses and bags, old store cards or credit cards we’ve stopped using, or just haven’t noticed there are redundant direct debits ticking along in the background. You may have forgotten about them but all of these things, if they are still active will be taken into account by lenders when they decide whether to lend to you. So close all accounts you don’t use or need any more.
Remember to update your address with any credit cards, mobile phone providers, etc when you move.
Join the electoral roll
This is the easiest step you can take to improve your chances of being accepted for credit, get on the electoral roll. Prospective lenders and credit reference agencies use this to check you are who you say you are and live where you say you live. If you move, always make sure your credit record shows correct address details and use that same address when making credit applications. Join the electoral roll via gov.uk.
How to boost your credit rating:
1.Pay like clockwork
Avoid missing repayments or making them late (for anything from mortgage to utility bills) – otherwise they will stay on your credit record for up to six years. If, when you check your report, you find something on their that wasn’t your fault and can prove this, talk to your credit provider about getting the error removed.
2. Pay off your debts
Pay off more than the minimum repayment – this shows prospective lenders you are managing your debt well and taking it seriously. Don’t max out your card’s spending limit either – using more than 90% of a credit card’s limit can reduce your credit score.
3. Get a credit card
If you don’t have a credit card, it’s worth getting gone and here’s why. If you’re asking a lender for money and have no track record, it makes it harder for them to assess you. You can get card that’s designed to help you rebuild good credit. The rates on these cards are really high but as long as you repay the card in full each month you won’t be charged interest. This will build a good credit history and shows a responsible attitude to debt.
4. Don’t apply for credit too often
Every time a credit search is made by a lender, it leaves a ‘footprint’ on your file for a year. So, before you apply to borrow any money, do your research, check best buy credit card tables online. Too many credit searches in a short space of time looks a bit desperate and could make your application less attractive. If possible, find out if you are likely to be accepted before you buy by using an eligibility-checking service.
‘It will help your credit score if you let some of your credit accounts mature. For example, holding the same credit card for five years can add 20 points to your Experian Credit Score,’ says James Jones.
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3 Easy Ways to Raise Your Credit Score
With the average credit score among twenty years only being a 662, it is safe to say that consumers are looking for quick, legal, and safe ways to raise their credit score. However, in an era where the opportunities seem endless, it is easy to get boggled down and confused about what opportunities exist.
Fortunately, we did the research for you, and put together a list of three easy ways for you to increase your credit score. It is important to note, that these ways are used by millions of Americans every year. They are regulated by the Government, legal, and 100% legit. Shall we begin?
- Consider Purchasing a Tradeline
Do you struggle with paying your payments on time? What about paying your balance down each month? These are just a few issues consumers around the world face on a monthly basis. With a purchased tradeline, you essentially ‘buy’ your way into someone else’s credit and piggy back off their strong credit habits. Ultimately, with a tradeline, your credit score will increase overtime as your credit feels the positive effects of paying off your credit card debt each month, making routine payments, and not overspending. However, it is important to note that three credit bureaus frown upon this practice, but it is 100% legal and a rapidly growing industry. In fact, the three credit bureaus are starting to accept this practice as more and more consumers are turning to tradelines to bolster their overall credit health.
- Work with a Credit Repair Company
Ever heard of a credit repair company? I hope so. Believe it or not, you may have negative items on your credit report that are holding down your credit score. Whether it is a late payment, repossession, or bankruptcy, a credit repair company can help remove these negative items from your credit report. On your behalf, they will draft and file disputes with all three credit bureaus. Additionally, they will open up their repository of financial information to help educate and train you, so you can start forming strong credit habits.
It is important to note, that partnering with a credit repair company is never a guarantee. However, they bring years of industry experience and have results to back up their claims. Make sure you partner with a company that has been in service for years, has positive customer reviews, and is within your budget.
- Try Out Credit Repair Software
Like a credit repair company, credit repair software will guide you through the repair process. While the software will not fix your credit, it will walk you through each step to successfully repair your credit yourself. This option is best for those who prefer a ‘do it yourself’ approach. However, the best credit repair software is often expensive and time consuming. Nevertheless, it is still a great option if you are struggling to raise your credit score.
Benefits of Raising Your Credit Score:
As you can imagine, there are quite a few standout benefits of raising your credit score. First, a good credit score will allow you to refinance your loans for a more competitive interest rate, and you can apply for a credit card with better benefits. Furthermore, employers are increasingly turning towards reviewing an applicant’s credit. So, if you want to set yourself up for your dream job, then you better hope your credit score is good. While it may seem nerve-racking at first, these are the best options for consumers when it comes to raising their credit score. Make sure to do your research, read previous customers responses, and analyze each option carefully. But remember, the earlier you start the better. You want to resolve your credit issues immediately and begin forming good credit habits.
Wealthy Operators helping aspiring homebuyers with proven credit building to buy dream home at low interest – Press Release
Helping people get a fresh start to their lives through his robust financial services company is Solomon Lacy
His company is a modern-take on changing people’s lives by earning them more profits and making them financially independent.
People always fear to talk about their financial decisions, perhaps because they have lacked confidence and courage to make the right decisions in life. Especially after retirement, many people are clueless about how to make an income or earn some profits making certain financial decisions. Experts and professionals are what individuals need to make them understand the value of credit scores and building the same. One such learned professional in the financial services industry, also one of the leading credit building gurus is Solomon Lacy III from Atlanta, the US.
Lacy is the man behind the financial success of many individuals and families, who has shown them the right path and has taken them towards their desired lives by scaling their businesses and making them financially independent. Lacy is a Flint, Michigan native and graduated from the Alabama State University. Football always attracted him and so in high school and college, he played like a professional. Growing up, he realized there was a lot to be done and achieve in the corporate world and thus, started his journey into the financial space.
Lacy joined Home Depot as a corporate recruiter and working in the company made him understand that his life’s purpose was much bigger than what he did; it is to help others and guide them in their journey to attain their American dream through financial freedom. Since scores always played a huge role in his life from the time of his football days, he initiated his firm called Fresh Start Financials Group. The company began its operations first as a boutique credit repair company and then with the passage of time, gained more popularity and became a growing financial services company.
To help people overcome all the challenges with credit and funding, Lacy and his company provide tools and the necessary steps to make them achieve what they desire. Lacy has earned degrees in business and political science, and a master’s degree in clinical and mental health therapy, from the Alabama State. The knowledge he has gained as a therapist has helped Lacy understand people and their various decisions more, helping him to build stronger relations with all his clients.
While working at the Home Depot, Lacy learnt the significance of customer service. Later, he became a consultant in the PEO (professional employer organization) field, which made him focus on workers’ compensation and small business services. This experience made him expand his business network and he gained the confidence to come up with his company.
Due to credit barriers, all the individuals and credit owners who do not gain funding, Lacy’s Fresh Start Financials Group offer a range of services to people that can help them with repairing and strengthening the credit. Lacy has helped more than 1,000 families and helped clients attain over $25 million in funding. His company also helps people and business owners by facilitating investments in Amazon and Shopify stores and opportunities in real estate as well allowing them to earn passive income for the long term.
Guiding people on the right path and educating people to use the credit to their advantage, leading to flourishing results has made Solomon Lacy III, the successful entrepreneur he is today.
Instagram : https://instagram.com/solomonlacyiii
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