As we start a fresh new year, we all have things we want to look at and improve. Get that new gym membership, start meditating, stop eating ice cream by the tub… maybe that’s just us... But finance is often something that most of us also want to address, review, improve. Credit is such a huge part of our future finances and getting better rates on loans, mortgages, cars and so on. It’s certainly something to look at and work on for 2022. With that in mind, we’ve prepared a new list of ways to help build your credit score in 2022.
This is a quick win! Simply put, the electoral roll allows lenders and credit references know you are who you say you are and live where you say you live. So make sure you are registered on the government website here. Please note it normally takes 30 days to show on your credit report.
You might not know this, but utility companies report your bill payments to credit reference agencies. It helps to build your credit score if you have a few utility accounts on your name and you pay your bills on time and in full every time. To make sure you never miss a bill, make sure payments are automated by setting up direct debit payments.
Lenders can see if you are making minumun payments on existing debt, which can suggest to lenders that you're finances aren't in the best shape, and it also means you'll be paying far more in interest. The more you repay, and the faster you reduce your level if debt the faster you can improve your credit score.
Make sure your name is added to any household bills to bulk out your credit history. Even if it's being paid on time, every time, lenders won;t know unless you've also added your name on. Make sure your also getting the credit (pun intended) for paying those bills!
Please note that adding your name to bills will tie you to anyone else who is also on the account. If they have a poor credit history, it could make you appear risky to lenders.
At Wollit, we are able to build your credit with all 3 major UK credit reference agencies every month through a small monthly payment. You can set up your account and be on your way to a better credit score in 2 minutes. Get the app here.
Remember not to make too many credit applications within a short space of time. Each application you make will be recorded on your credit file for lenders to see – whether you are accepted or not. If you make lots of applications at once, this can give lenders the impression that you are desperate for cash, even if you aren’t.
Also take a look at your eligibility beforehand as these tools will not show on to lenders or affect your credit score.
It takes time to build your credit score and report through consistent payments, so make sure you have patience with the process and build things overtime for a better credit future!
Improve your credit score and unlock your Affordability Score