If you feel that you credit score is not good or know that it needs improving then you may wonder whether there are things that you can do to improve it. There are actually a lot of things that you could do to help to improve things and that will mean that you will be able to get a better looking credit report to help with your future borrowing or other things. There are quite a few different things that you can try but there are some main ones that might be more likely to make the biggest difference.
Pay Everything on Time
It is so important to be able to prove that you will be able to make the repayments on the commitments you have. This does not just include loan repayments but also bill that you have to pay regularly too. Anything like utility bills, mobile phone contracts etc, will all show that you are responsible and will be able to make regular payments which will give people confidence. They will feel they can trust you to make loan repayments, rent payments or whatever if you already manage to make payments regularly and consistently.
Be Named on Bill Payments
Some people struggle to prove that they are able to make regular payments though. This might be because they do not have any bills in their name and therefore nothing that will show up on their credit record. However, it is possible to amend this. See whether your name can be added to household bills that are always regularly paid and you will be able to start to show that you are capable of making regular repayments.
Have a Permanent Income
Most lenders like to see that you will have a regular income coming in which will be able to pay for the repayments and other looking at your credit record will feel the same. This means that if you are in a job with no fixed shifts and therefore no guaranteed income, that will go against you as will being in the probation period for a job as opposed to being in permanent employment. Therefore, do what you can to make sure that you can get a permanent income if you can. It may not be easy, but it could make a really big difference.
Do not Have Too Many Loans
If you have a lot of loans, then it may give the impression that you have a lot of financial commitments and may not have any money left to pay for the things that you need. Therefore, it can be a good idea to see whether you can pay any of them off. Then you will have less and not only will it mean that you will have more money to spend on yourself rather than loan interest, you will also have a better looking credit report. It might be wise to repay the smaller ones so that they disappear more quickly, although it could make even more financial sense to repay the more expensive one first. Another bad sign is if you keep applying for loans. Even if you get turned down and so apply again, this will look bad. It will look like you are really desperate for money which is something potential lenders, landlords etc do not like. Also, if someone has turned you down and you apply elsewhere, you could find that they turn you down as well, just based on the fact that you were turned down before, not even based on them looking further than that. So you need to be very careful about what you apply for.