Welcome back to the third part of our guide to credit scores. Last time, we covered what your credit score really means and why regularly checking it is so important.
In this last part of the series, we will give you hints and tips on how to boost your credit score and ensure your financial profile reflects your true situation.
- Check your credit report for errors
Mistakes happen, and your credit report is no exception. Sometimes, errors like incorrect names, addresses, or outdated financial information can appear on your report. These errors might result from a lender or bank providing incorrect details to the Credit Reference Agencies (CRAs).
Even small inaccuracies can impact your credit score and your ability to secure the best credit deals. The good news? Errors can be corrected, and doing so can help improve your credit score.
Start by signing up with credit referencing agencies like Equifax, Experian, or TransUnion. Check your report thoroughly to ensure all the details are accurate.
- What to do if you spot a mistake
If you notice something wrong on your credit report, you can raise a dispute directly through the CRA. Look for the “Raise a Dispute” option in the relevant section of your report.
Here’s how it works:
- Select the information you believe is incorrect and provide a reason for the dispute.
- The CRA will flag the issue and contact the lender or company that supplied the data to verify its accuracy.
- Sometimes, you may need to provide additional information to support your case.
Lenders have 28 days to investigate and respond to the CRA. If the lender confirms an error, your report will be updated, and the correct information will appear the next time your report is refreshed.
- Get on the Electoral Register
It might seem like a small task, but being on the electoral register at your current address can significantly impact your credit score.
Why?
- It helps lenders verify your address and identity.
- It shows stability, especially if you’ve been at the same address for a while.
Students, take note: you can register with either your term-time address or your parents’ address—just make sure the address matches what you use on any credit applications.
- Review Your Financial Ties
Sharing financial responsibilities can create “financial associations” that affect your credit score. Common examples include:
- Joint mortgages with a partner.
- Shared utility bills with housemates.
- Acting as a guarantor for someone else’s loan.
However, simply sharing an address or being married does not create a financial association.
If you have a financial association with someone who has a poor credit score, it could impact yours too. Even if you’ve moved house, ended a relationship, or paid off a joint agreement, these associations might still appear on your credit report.
To update this, check your report for outdated associations. If they no longer apply, you can request their removal through the CRA.