Got a less than impressive credit score? Shaky credit can affect how much lenders are willing to credit you with and affect the interest rate you are charged. Here are a few ways to get your credit score back on track.
Keep it smooth.
Large deposits, big withdrawals or applying for a lot of credit at once all affect your borrowing power negatively. Even if you are having an investment such as a fixed rate bond pass through your current account on the way to another bank this can negatively affect your credit score!If you want to patch up your credit score try and keep both outgoing and incoming cash stable for a while. Try and break up big sums and avoid anything that will show up as unusual when the lender assesses you.
If your partner or someone you share a bank account, mortgage or loan with has poor credit then you are effectively getting tarred with the same brush. If your partner has bad credit try and remove your name from shared accounts and your credit score should improve.
Lenders assess you based on how much credit you have available to you right now, not how much you have used. If you have accounts hanging around with a balance you’re not using you should consider closing these down.This can affect you if you take out credit cards for loyalty points, cash bonuses or special offers. Many people who trust their self discipline apply for credit cards with a bonus attached and then don’t use the card. If you’re doing this you may be affecting the availability of credit you actually want to use.
Moving house a lot puts off lenders. They would rather see a stable address you have lived at for a while.
We all know that late payments affect your credit score. If you think you are going to be late on a payment get in touch with the person you owe money to well before or immediately after the problem arises. Very often people will be willing to help you.
When you miss a payment you may despair and accept the situation however there is a way through the mire. Lenders looking at your credit history will overlook isolated late payments that run to the 30-60 day mark. If the payment goes over the 90 days late mark this is when it really impacts your score for the worse.
If you have a late payment that has been reported on your credit score which you feel might be a mistake you can try and get it removed. Removing a 90 day late payment will immediately improve your credit score. If you can’t get it removed, just don’t get another one!