How to improve your credit score and get a good credit history
EVER bothered to check your credit report? If you haven't, it's time to do it now.
A bad credit file can mean you miss out on getting a mortgage for your dream home, the best credit card and loan deals, and even a mobile phone contract.
But if you have checked your report and it's not great - or had a credit application rejected - don't worry.
There's steps you can take to improve your score and get a good credit history, so you'll hopefully be able to access some of the best deals on the market.
With the help of money expert Andrew Hagger, The Sun takes a look at how you can boost your financial CV.
What is your credit history?
In the UK there are three Credit Reference Agencies (CRAs): Experian, Equifax and Callcredit.
All three firms hold data about your financial history - so things like your bank accounts, any credit cards or loans you have and the balances on them, and any late payments you've made.
Also included in the data is if you've had any County Court Judgements made against you and if you've been declared bankrupt.
How do I check my credit report?
TWO thirds of Brits have no idea what their credit score is, so it's worth checking yours to see if you need to improve it.
All three CRAs offer you the chance to view your score, report and more for a monthly fee BUT you can get hold of your score for free without paying for a subscription.
Experian - Sign-up to its CreditMatcher service which will give you access to your score and help you shop around for deals you are likely to be accepted for. If you want access to your full report you'll pay £14.99 a month after a 30-day trial period ends.
Equifax - You can get your Equifax report AND score through a website called Clearscore. If you go to Equifax directly you'll pay £14.95 a month after its 30-day free trial.
Call credit - You can get your report and score for free via its Noddle website, which advertises loans and cards you are likely to be accepted for.
You also have a legal right to access your report from each CRA for just £2 - but this won't include your score.
The reason this information is really important is that when you apply for a new credit agreement - like a credit card, loan, or mobile phone agreement - lenders will use it to decide whether they will lend to you or not, and if they do, what deal you'll get.
What is your credit score?
Credit reports can be confusing - and one of the problems is that Brits think they have an overall score which shows if they'll be accepted for credit or not.
In fact, there is no universal score - the score you get from the CRAs when you check your report is just an indication of your overall credit-worthiness and shows how likely you are to be accepted for an agreement.
So Experian will rate you on a scale of 0-99, Equifax from 0-700 and Callcredit from 0-710.
And remember - the CRAs don't decide if you're going to be accepted for a deal or not - they just provide details of your money history to lenders who will make the ultimate decision.
I've been rejected for credit - how can I improve my score?
Although there's no such thing as a credit blacklist which bans Brits from accessing any form of credit, if you've had money trouble in the past you might find lots of lenders won't consider lending to you.
But there are things you can do to help improve your rating.
In February, the Sun reported on what actions boost your Experian credit score - and what doesn't.
And here are some tips that'll help you get your credit report on the right track - remember that it's all about showing that you can be a responsible borrower.
Don't make too many applications
If you get rejected for one credit card, it might be tempting to apply for another straight away.
But making lots of applications in a short space of time can be a sign that you're in financial difficulty and make lenders reluctant to lend to you.
Each application you make is recorded on your file for 12 months but to get around this, use eligibility calculator to see how good your chances are to be accepted for a deal before you apply.
Get on the electoral register
Lenders use the electoral roll as a way of proving who you are - and if you're not on it, you'll find getting credit much harder.
You can sign-up straight away by going and following the instructions.
Pay down your existing debt
If you've got high balances on your existing credit cards, lenders will again think that you're struggling to manage your money and will be more reluctant to lend.
Never miss a payment
Missing your monthly payment, or worse defaulting on an agreement, can have a dreadful impact on your credit file.
Defaults stay on your file for six years, so do all you can not to get behind on your payments.
Cancel old cards
Lenders will check the amount of credit agreements you have, with the limits showing on your report and lenders might be cautious if you've have access to lots of different
Cut financial ties with ex-partners
If you've ever had a joint account or any other financial "association" with an ex, their financial history can impact your own file.
To stop this, simply contact the CRAs and they will make sure the link between the two of you is broken.
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