4 ways to stop your old address affecting your credit rating

Over 64% of households in the UK own their own home*. That’s a heck of a lot of people! And many of these will have moved in the last few years.

If you’re one of them, or are currently in the process of buying a home, there are a few key things that you need to do to make sure your credit rating isn’t affected.

My credit rating? What’s that got to do with moving house?

When you apply for any type of credit, the lender you apply with will usually ask for your address history over the last three years.

They do this so that they can compare the information you give with the details the credit reference agencies (CRAs) hold about you to make sure it all matches up. Lenders may also check your address against the driving licence database, so that needs to be up to date too.

If they don’t all match, lenders may think you’re more of a risk to lend to. One thing we know about them is that they don’t like instability. So, if your addresses don’t match, they could think you’ve moved around a lot over the last few years. And this means that they could reject you when you apply.

Our 4 tips to to protecting your credit rating

If you’ve moved into your new house recently (congratulations!), or think you’re going to move soon (good luck!), follow our four tips below, which should mean there’s no negative impact to your rating in the long run.

1. Update your bank

They will need your new address so they can update both their own details and the CRAs – this means your credit report will be updated too.

2. Update any lenders you currently have credit with

Whether it’s a credit card, loan, store card or even if you’ve bought something on finance, like a car, you’ll need to let the lender know. Like your bank, they’ll update their own details and the CRAs.

3. Register to vote at your new address straight away

Lenders use the electoral register to confirm you are who you say you are. They’ll also use it so make sure that that the details you give them on the application form are all in order.

This helps them avoid problems with fraud and identity theft – and the more security the lenders have, the more likely they are to lend to you.

As soon as you move, register to vote here.

4. Update your driving licence with your new address

Lenders will check the details that you put on your application form, and the ones on your credit report, against the driving licence databases to make sure they’re the same.

This is another way the lenders can check you are who you say you are.

Update your driving licence here.

I’ve moved in the past and I’m not sure if I updated everything.

First things first, you need to check your credit report for free through CredAbility or ClearScore.

You’ll be able to see your past addresses listed there. If you think there’s one missing, you can contact the CRA and ask them to update your information.

 

 

 * https://www.theguardian.com/society/2016/aug/02/home-ownership-in-england-at-lowest-level-in-30-years-as-housing-crisis-grows