Improving your credit rating is a little bit like getting ready to go out on the dating scene.
If you want to attract the best dates, it’s a good idea to spruce yourself up and make yourself as attractive as possible to your potential ‘one’.
And we’re not talking looks here (we’re not that shallow!). We mean the whole package.
What does dating have to do with my credit rating?
Well, technically nothing really. But, just as you’d spruce yourself up if you were going out on the pull, it’s a good idea to spruce up your credit rating before you apply for credit. It’ll help with your chances of being accepted.
How do I do that?
We’ve made it simple for you. Here are the 5 easiest ways to spruce up and improve your credit rating.
1. Play it cool
‘Would you like to go on a date?’
‘I’ll take you to the best restaurant in town?’
‘How about the cinema then?
‘How many more times do I have to say no?!’
Desperation is not cool when it comes to dating. And it’s not cool when you’re applying for credit either.
You apply. You’re rejected. You try a different product. You get rejected. You just try one more to see what happens. Rejected.
This screams desperation to the lenders – it can look like you just want money and don’t care where it comes from. And each time you apply for credit, it’ll leave a footprint on your credit report, which lenders will be able to see. So if there are a lot of footprints on yours, they may swerve you.
2. Keep things current
Imagine arranging to go on a date with someone online. You’ve seen their photos… nice eyes, same interests, decent clothes. Then you turn up and they’re about 20 years older than they were in the pictures. You’d be straight out of there, wouldn’t you?
Well, think of the lenders… they check your application, think you sound like a safe bet, but then go to different databases to check that you are who you say you are and are faced with miss-matched information. It may mean they say no.
So, make sure that all of your details match. Your name and address should be the same on your application, your driving licence, with your bank or any lenders you have credit with, and on the electoral register too.
3. Say goodbye to the past
You’re on a date when a call comes through to your phone. You answer and it’s your ex. Your date isn’t going to be impressed are they?
Your exes don’t just ruin your chances when it comes to dating though, they can also have a negative impact on your credit rating too.
If you’ve ever shared a bank account, loan, mortgage or any other type of financial contract with someone, close the account down. If they have bad credit, they could be the reason you’re getting rejected.
Once closed, request a notice of disassociation from the credit reference agencies and say goodbye to that ex for good.
4. Mistakes happen
Everyone’s made a mistake on a date, whether it’s calling them by the wrong name, ordering a juicy steak when they’re vegetarian, or legging it when you realise you can’t spend more than five minutes with them. However, we hope you’d apologise (by text if you did a runner!) and move on.
Well, mistakes can happen on your credit report too. Whether it’s a missed payment that you definitely paid, a CCJ you settled on time, or even an account you don’t have, get it fixed and move on. Making sure that everything’s correct can increase the likelihood of lenders saying yes.
Find out how to fix any mistakes here.
5. Lateness is a no-no
No one likes a date turning up late. And lenders don’t like you being late either.
In fact, making a late repayment is something you want to avoid all together when it comes to getting accepted credit. And missed payments… we won’t even go there!
Make sure you meet all of your repayments on time every month. And remember, if you do make a late payment or miss one altogether, it’ll stay on your credit report for six years.
Different strokes for different folks
Before you go, we have some words of wisdom.
Just because you’re rejected for a date by one person, it doesn’t mean you’ll be rejected by everyone.
And lenders are exactly the same. Just because one says no, it doesn’t mean they all will. They are all looking for different things too.
Disclaimer: All information and links are correct at the time of publishing.