If 2024 is the year you plan to buy your first home, your credit rating is vital.
Having a good rating is important if you want to take out a mortgage or loan at better borrowing rates.
Using the Yellowtom UK directory you can find your local mortgage broker who can help you land a great deal.
In the meantime, look at how you can improve your prospects by following these tips.
CHECK YOUR REPORT
There are three main credit agencies: Experian, Equifax and TransUnion. You can check your report for free with Experian, while your Equifax and TransUnion files can be viewed for free through ClearScore and Credit Karma. Check all three agencies as your score may differ.
REGISTER TO VOTE
Being on the electoral roll can boost your score as it helps banks verify your identity. With Experian, it can lift your rating by 50 points. It only takes a few minutes to register. Visit gov.uk to find out how.
SET UP A DIRECT DEBIT
If you pay a bill manually each month, consider setting up a direct debit It shows you are financially reliable and removes the risk of forgetting to make a payment, which can damage your credit score.
TIDY UP YOUR CREDIT
Keep credit card balances to no more than 30 per cent of their limit to show lenders you are not over-reliant on credit. Use spare cash to reduce balances and avoid applying for several deals at once as it makes you look financially desperate.
CHECK FOR ERRORS
Court judgements or credit defaults could reduce your score by 250-350 points.If one was registered unfairly, for example if you missed a bill when you were moving house, challenge it through the lender or court.Companies can also make errors.If you spot something on your report that isn’t right, ask for it to be removed.
BREAK FINANCIAL TIES
Joint accounts show on your credit report and link you in lenders’ eyes. This means the other person’s credit history can affect your score. If they are being financially irresponsible, it’s best to cut ties.