Credit score

Experian shares five tips to quickly improve your credit score by the end of summer

According to the analysis of a credit check business.

Experian customers had an average monthly balance on all credit accounts, excluding mortgages, of £9,681, up from £11,615 when the lockdown began in late March 2020. He said the results suggest some borrowers have took the opportunity to use the savings from cutting expenses to get their finances in order and improve their credit score.

The average length of time people held a credit account was another common positive factor influencing scores. Some 41% of Experian Credit Expert customers had mature credit accounts held on average for 34 months or more, demonstrating a proven credit history to lenders.

James Jones, Head of Consumer Affairs at Experiansaid: “The Covid-19 pandemic has changed the way we live day to day, and in some cases our financial outlook and priorities. improving credit ratings.

“As the UK slowly begins to return to some sort of normalcy, people should continue to practice the good financial habits they have adopted during lockdown, particularly where it can have positive effects on your credit report. and your score. A healthy credit score can help secure low rates on future borrowing, so can pay handsome dividends.”

Experian said the proportion of available credit a person uses can be one of the biggest factors affecting a credit score.

High credit utilization may suggest that someone is at higher risk and therefore may negatively impact a score. Reducing credit account balances can have a positive impact on a person’s credit report.

Experian encourages anyone worried about making credit payments and other commitments to seek help, because the sooner the situation is addressed, the sooner you’ll be back on your finances and improve your credit rating.

Five tips from Experian to improve your credit score

  1. Register on the electoral lists at your current address. In addition to helping confirm your name and address, it contributes to an Experian credit score, as it is considered a sign of stability and reliability.

  2. Check your credit report regularly and ask for any errors to be corrected. Make sure your report reflects the facts.

  3. Keep credit card balances as low as possible. The amount of credit card limits you regularly use can have a big impact on scores because it shows how dependent you are on credit.

  4. Limit requests for new credit. Space out any credit inquiries you make and shop around using eligibility verification services. This way, you’ll only apply for jobs you’re likely to get, and you’ll avoid collecting multiple “difficult” search footprints.

  5. Consider letting your credit history mature. While it’s a good idea to shop around once in a while to make sure you’re getting the best deals, it will improve your credit score if you let some of your credit accounts mature. Holding the same credit card for five years can add 20 points to an Experian credit score.

What is a credit report?

A credit report is a record of all your loans, checking accounts, and lots of other financial and public information about you — including where you live, whether you’re registered to vote, and more — that people use to check your reliability. . before dealing with you.

What information is contained in a credit report?

A typical credit report includes:

  • Personal data about you – for example, your name and address

  • Details of all your credit accounts – i.e. bank accounts, credit cards, utility bills, phone accounts, store cards and mortgages

  • Payment status – for example, do you pay your bills on time

  • Repayment history – for example, have you missed any payments in the past

  • Your outstanding balance – how much you have borrowed in total, by type (how much overdraft, how much on cards, how much on loans, etc.)

  • How much credit do you have? For example, you have a credit card limit of £1,000, but you only have £50.

  • How long have you had these accounts – the longer the better your score in many cases

  • How often you request new accounts – if you have just requested 20 new credit cards, this will be apparent to anyone viewing the report

  • Are you on the electoral lists

  • Have you had CCJs, IVAs or been declared bankrupt in the last 6 years

  • Do you have any debts to a previous address

  • Have you been a victim of identity theft

  • How many addresses are you linked to – i.e. do you have credit accounts whose payment address is outdated or different from your main address

  • Past names

  • Financial Associates – these are people you are linked to through joint accounts

Financial aid available in Scotland

Who uses credit reports?

A huge number of people check your credit report – it’s not that expensive to do and it’s a quick way to find out how reliable/responsible you are.

People known to verify them include:

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