How Can I Improve My Credit Score?

When applying for a mortgage, your credit score is taken into consideration by mortgage lenders. This means your credit score needs to be at a certain level in order to be approved for a mortgage, as well reap the benefits of lower interest rates and more.

Credit scores explained: what is it?

A credit score is a number that encompasses an individual’s “creditworthiness”. If you have a high score, lenders will look at this favourably and are more likely to lend to you. Lenders will use your credit score to determine the likelihood of whether you will repay loans in a timely manner.

Credit scores range from 0 to 999. According to Experian, a credit score of 720 – 880 is considered fair, 881 – 960 is considered good and 961 – 999 is considered excellent.

Your credit score is based on your credit history. This is made of the number of open accounts you have, the total levels of debt, your repayment history, as well as many other factors.

What factors harm your credit score?

There are a number of factors that can affect your credit score and cause the number to drop. These include:

  • History of late/ missed payments
  • Exceeding your credit limit
  • Defaulting of payments and credit agreements
  • Bankruptcies or County Court Judgements (CCJs)
  • Holding a joint account with someone with a bad credit record
  • Withdrawing cash from your credit card
  • Not being on the electoral roll
  • Making too many credit applications in a short span of time
  • Amongst many other things

How can I improve my credit score?

When you’re looking into getting a mortgage, this is one of the most important questions you can ask. How can you improve your credit score? 

Here are our top tips for improving your credit score.

  • Prove where you live and register on the Electroral Roll
  • Start building your credit history and make regular payments on time
  • Check your credit report for any mistakes or errors
  • Demonstrate a long credit history by keeping old accounts and only using a small portion of the credit limit

There are a number of reasons why you should improve your credit score, especially if you’re planning on applying for a mortgage in the future. By having a high credit score, it means that companies see you as low risk, and are therefore more willing (and likely) to approve you for credit.

The main benefits of improving your credit score include: giving you a better chance of receiving approval for a credit card, mortgage or loan; lower interest rates, better car insurance rates and higher credit limits.

How long does it take to see improvements?

Unfortunately, improving your credit score is not an overnight fix; it will depend on a number of factors and may take a bit of time. If you want to see real improvements on your credit record, give yourself a good couple of weeks.

If you have missed payments, defaults or court judgements, these will stay on your credit record for 6 years. The impact of these will lessen and reduce over time as the record ages, and then get deleted altogether after 6 years.

Contact Robin Mortgage Design

We hope you enjoyed this short article; if you’re worried about your credit score and how this could impact your application or mortgages available to you, our team of professional mortgage advisers at Robin Mortgage Design would be happy to help, please get in touch. 

Give us a call on 0333 242 386, or you can fill out our online enquiry form, and we’d be happy to help.


Now it’s time for the legal bit: YOUR HOME BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE PAYMENTS

Robin Mortgage may charge a fee for arranging your mortgage, a typical fee would be £395.00 but could be up to £1,495.00 depending on your circumstances.

The information in this blog is only valid for the date it is written.

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