• Credit Scoring

    Are There Easy Ways to Improve my Credit Score?

    If you keep getting turned down for things because your credit check is not turning out well, then you may wonder what you can do. Well it is possible to change your credit record so that it is more favourable. This will allow you to have access to those things which at the moment you are getting turned down for. There are different things that you can try.

    It is wort noting though that different lenders will look for different things. This means that there is no fixed way that you should be changing things that will work for every lender. For example, some will like to see that you have missed a few repayments on something as they will feel that you will miss a few on theirs and they will be able to profit from that. However, others would rather see a completely clean record where you can prove that you can be trusted to cover every repayment. However, if you have never had any debt then you cannot prove that you are capable of repaying it, so this may go against you. There are a few things that you can try though which will hopefully improve the credit record in the eyes of most lenders.

    Check your record is correct

    The first thing to do is to make sure that your credit record is correct. Some people find that there are mistakes on theirs. It might be that it shows debts outstanding that have been repaid or just has information on there that is not right at all. You will be able to look at your credit report for free. Looking at it will not show up so you will not make any difference to it by just checking that it is correct. You can also inform the company that you are using to view it that the information on it is incorrect. However, it can be better to refer to the lender or company that has the incorrect information to inform them that it is incorrect and to ask them to change it.

    Keep on top of repayments and bills

    Regular bill payments and debts will appear on your credit report. If you can keep on top of them and make sure that you never miss a repayment then this will show that you are capable of making repayments on any loan that you are applying for. It can be best to set up direct debits to do this and then you will never forget to do it and so there is less risk.

    Pay off outstanding debts

    If you have lots of outstanding debt then this does not look good to potential lenders. Therefore, make sure that you do your best to repay debt if you can. If you have a selection of small debts then it should not be too difficult to repay them one at a time. This will not only show that you are capable of repaying debt but it will also mean you have less debt and therefore less to have to pay out on interest and repayments meaning you will be more able to afford another loan.

    Do not apply for lots of loans

    Lenders do not like it if you are applying or lots of loans. Each application will show up on your credit report whether it is turned down or accepted. Applying for lots of money looks like you are desperate which make it seem like you will not have enough to cover repayments. Also, if you get turned down a lot, it will look like lenders feel that you are too risky to lend to. Other lenders will see this and start to feel the same way as well.

    Have a decent salary

    Lenders will want to make sure that you will be capable of repaying a loan. Obviously, your salary has a big part in this and the higher it is, the more capable they will think you will be at repaying the loan. Therefore, make sure that you get a salary as high as you can so that they can trust you more. They will also be more likely to trust someone that has a salary form employment rather than form self-employment as they would see that as a more secure income.

    Conclusion

    As you can see, some of these items will be easier than others to do. Unfortunately, as all lenders have different criteria when judging whether to lend to you, it is very difficult to know whether you are making the right changes to your credit score and this means that the task is not easy. However, if you note the points mentioned above and try to put them into practice then hopefully you will have an attractive looking credit record that will allow you to get the loan that you need.