How to Boost Your Credit Score

by Mike on June 3, 2017

How to Boost Your Credit Score

Money makes the world go ‘round. And, in order to get access to money for most of the big purchases in life, like a house or a car, you need to appear financially sound. Lenders won’t take a risk on you if you have bad credit or you’re in arrears for past loans. Making sure your credit score is as good as it can be is a vital step towards securing more money. Of course, if you’re able to, paying out right for purchases is always the smarter option but most of us rely on lenders for things like buying our first home. So, how can you boost your credit score to make sure lenders look at you favourably?

Find Out Your Score

When you apply for a loan, each lender will have a different scoring system so it’s impossible to know exactly how a lender will view you. You can get a good idea by using a credit scoring company. The aim of doing this is to find out what information the company has on your file, what your score is based on the information and what you can change. Lenders will base their decisions on this type of information because it tells them whether or not you are a reliable risk. Do you always pay your bills? Do you pay past loan agreement instalments on time? Knowing what your lenders are looking at will allow you to get a better idea of how to boost your score.

Electoral Roll

You may not think that registering to be on the electoral roll would make such a difference, but it’s certainly worth doing. The reason that lenders check you’re on the electoral roll is to be sure that you’re registered to the same address that you’re using to apply for money. This is the quickest and easiest ways that loan companies and banks can avoid fraud. If you’re not registered yet, you could boost your score by doing so.

Who Are You Linked With?

Did you know that people you’re connected with can influence your credit score too? For example, if you share a joint account with your partner or you have a business partner with particularly bad credit, it could affect the decision your lenders make. If the people you are linked to are having a bad effect on your credit ratings, you may want to make some changes. For example, you may want to sever ties with your business partner or cancel joint accounts. If you and your partner are applying for a mortgage and your partner has bad credit, consider applying alone.

Don’t Miss Payments

Lenders are tell tales. If you’re thinking about applying for a mortgage or loan, know that all of your previous lenders will give information to your future lenders. Therefore, it’s important to pay all of your bills on time in the lead up to applying for more money. If you’re buying your first home, you may need to find out more about first time buyer solicitors fees. If you know exactly how much you’ll need to pay to get into your new home, you’ll be able to budget appropriately. After all, lenders like people who manage their money well.

Close Accounts

There aren’t many people without a credit card, catalogue account or loan. Many people have all three. One of the best ways of boosting your credit rating is close as many accounts as possible. If you’re able to pay off the balance of just one account in full and close it, it could increase your score dramatically. It’s also one less payment to make per month, so you haven’t got as much going out when you’re approved for new finance. This is especially important when it comes to mortgages because mortgage advisors will look at all of your expenses to work out if you can practically take on more monthly payments. They consider everything, from your existing payments to how much you’re likely to spend on food and clothing.

Pay More Than the Minimum

If you’re unable to close any of your accounts fully, try making more than the minimum payments. Even if you’re only putting an extra 20% on top, it’ll look good to lenders. It will also mean that you pay off your debt much quicker than you anticipated. There are plenty of ways to scrape together an extra 20% per month. You could cancel TV subscriptions, walk instead of drive or lower the amount of take-aways you eat per month. Here are some more ideas on how to save money.

Credit Building Credit Card

If you don’t already have a credit card, applying for one could boost your score. It seems a bit backwards considering banks prefer you to have less outgoings when applying for a loan, but a credit building card just ensures you have something on your report. It’s ideal for young people who don’t have a history of applying for credit because it’s a way of showing lenders you can handle making monthly payments. However, don’t be tempted to spend more than you should. Credit card companies have a nasty habit of increasing your limit so you pay back more and you have to have strong enough willpower to not spend the extra money on your card.

Don’t Rush

When you need or want money for a purchase, it can be tempting to apply anywhere and everywhere. Before you start applying, do your research. Find out the lenders that are likely to accept you and apply to the lender with the best terms. If you start applying to the first lenders you see and get rejected, that may not look good on your report. There are certain lenders you can apply with that don’t affect your credit rating, but most will leave some kind of trace. Be sure before filling out any applications, no matter how desperate or excited you are.


When it comes to large purchases, like a mortgage, try to get as informed about your credit rating as far in advance as possible. It could save you a lot of time, effort and money.


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