"Individuals possessing less favorable credit ratings encouraged to execute a straightforward online verification for potential savings of approximately £13,541 on loan fees"
In the UK, keeping a good credit score is essential for securing loans and mortgages with favourable interest rates. Fortunately, there are several free services available to help you check and improve your credit score.
To begin with, you can access your Equifax credit file for free through ClearScore. Additionally, the three main credit reference agencies – Experian, Equifax, and TransUnion – offer free access to your credit score. By regularly checking your score via these agencies or platforms that use their data, you can keep track of your financial health without worrying about negatively impacting your score.
Improving your credit score can save you a significant amount of money on loans and mortgages. Here are some key steps to consider:
- Register on the electoral roll: This simple step can help lenders confirm your identity and address quickly, giving an immediate boost to your credit file. On Experian's credit score, being on the electoral register can yield up to 50 points.
- Pay all bills on time: Timely payments are a major factor in credit scoring. Make sure to pay your credit cards, utilities, and mobile phone contracts on time to improve your score.
- Keep credit card usage low: Avoid maxing out your credit limits. Using less than your available credit shows responsible money management and positively impacts your score.
- Limit new credit applications: Multiple hard credit inquiries can lower your score. When shopping for loans or credit cards, consider prequalification checks instead, which don't affect your score.
- Regularly check your credit reports for errors: Correct inaccurate or outdated information quickly by contacting the credit agency to dispute it.
- Maintain updated personal information: Ensure your address and contact details are current with financial institutions and utilities to keep your credit file accurate.
- Use credit accounts responsibly: For those new to credit, opening a low-limit credit card and paying it off in full monthly can build a positive credit history.
CreditLadder and Loqbox are platforms that can help boost your credit score by reporting rent payments to all main credit reference agencies for free. Loqbox, in particular, can help boost your score by up to 200 points within 12 months through a loan repayment system that reports monthly payments to credit agencies.
Remember, improving your score may take time, but consistent responsible financial behavior helps you qualify for better interest rates on loans and mortgages, saving you money in the long run.
It's also important to note that lenders only have to offer their advertised rates to 51% of successful applicants, meaning those with lower scores often face higher costs. This has driven nearly a third (31%) of loan applications to be rejected. To avoid this, it's crucial to check your credit report regularly and fix any errors that could be affecting your score.
In conclusion, the best approach is to check your credit regularly through established agencies, ensure your financial and personal details are accurate, pay bills promptly, manage your credit utilization carefully, and apply for new credit sparingly. By following these steps, you can maintain a good credit score and secure loans and mortgages with favourable interest rates.
Managing your personal-finance wisely, including maintaining a good credit score, can lead to considerable savings on loans and mortgages. To achieve this, you can use platforms like CreditLadder and Loqbox, which help report rent payments to credit reference agencies like Experian, Equifax, and TransUnion, thereby potentially boosting your credit score.
Maintaining a good credit score through responsible financial behavior ensures lenders see you as a lower risk and may offer you loans and mortgages with favourable interest rates, ultimately saving you money in the long run.
