Get your credit rating, mortgage ready
25th April 2023
Your credit rating is a crucial factor in obtaining a mortgage or any other form of credit. Lenders use it to determine how risky it would be to lend you money. If you have a poor credit rating, it can negatively affect your ability to get a mortgage or loan, or you may be offered higher interest rates. Therefore, it's important to take steps to improve your credit rating to increase your chances of securing a mortgage.
One of the easiest and most effective ways to improve your credit rating is to ensure that you are on the electoral roll. Being on the electoral roll confirms your identity and address, making it easier for lenders to assess your creditworthiness. If you're not registered to vote, you can do so online or by contacting your local council.
Another key step in improving your credit rating is to ensure that all your credit accounts are registered at your current address. This includes any bank accounts, credit cards, and loans you may have. If your accounts are registered at an old address, it can make it difficult for lenders to verify your identity and address. It's important to update your address with your creditors as soon as you move to avoid any confusion or delays in the future.
If you have recently married and changed your name, it's important to make sure that all your credit accounts are updated with your new name. This will ensure that your credit history is accurate and up-to-date, making it easier for lenders to verify your identity and creditworthiness.
In addition to these steps, there are other things you can do to improve your credit rating. For example, you can reduce your credit utilization by paying off your credit card balances in full each month. You can also avoid applying for too much credit at once, as this can negatively impact your credit rating. Instead, focus on building a good credit history over time by using credit responsibly and making payments on time.
It's also a good idea to check your credit report regularly to ensure that it's accurate and up-to-date. You can get a free credit report from each of the three main credit reference agencies in the UK: Experian, Equifax, and TransUnion. To access your free credit report click here (Try it FREE for 30 days, then £14.99 a month - cancel anytime). If you notice any errors or inaccuracies on your credit report, you should contact the relevant credit reference agency to have them corrected
In conclusion, improving your credit rating takes time and effort, but it's worth it in the long run. By following these tips, you can increase your chances of getting a mortgage and other forms of credit, as well as getting better interest rates. Remember to stay on top of your finances, pay your bills on time, and avoid taking on too much credit at once.