If you’ve done any kind of research into getting approved for a mortgage, you’ll understand that most lenders will require you to have a good credit score. While this isn’t necessarily the case all the time, having a good rating will naturally help you to secure the best mortgage you need to realise your home-owning ambitions.

So, to help you in this regard, here we take a look at 5 tips on how to improve your rating. These aren’t pie in the sky tips either, rather they’re action points that you can do yourself and make a real difference to how viable you appear to mortgage companies. So, if you’re ready, let’s get started.

Tip 1 – Make Sure Your Credit File Is Up to Date

Something that will definitely work in your favour is ensuring that all of the information on your credit file is accurate and up to date. That means going through it with a fine-tooth comb to ensure that elements like your addresses and payment history are accurate. 

The fact is that the three main credit reference agencies in the UK (Experian, Equifax and TransUnion) are often prone to errors. What’s more, they don’t talk to each other, which is why you need to check each one individually.

Tip 2 – Run a Low Balance on Your Credit Cards

Your credit file is something that usually reflects how sensible you are with your money and whether you’re someone who is in control of their finances. If you’re always maxing out your credit cards, this is a sign that you’re not able to manage your money sensibly and will count against you. 

What will count in your favour, however, is if you run your credit card on a low balance and pay it off in full each month. It’s also important to make sure your monthly payments are made on time, without fail.

Tip 3 – Don’t Keep Applying for Credit

Another big no-no when it comes to maintaining your score is continually making applications for credit. This often happens when people keep getting turned down, but each time you do, it knocks your credit rating down a little more – with each search showing up on your file.

If you are interested in knowing whether you’re eligible for credit with any given company, then perhaps try using ‘soft search’ options that allow you to find out without it showing up on your file.

Tip 4 – Be Patient, As Results Will Come

Repairing your credit rating is a lot like dieting, in that you can’t expect results overnight and it’s a case of doing the right things each and every day. If you do, then you’ll usually see your score steadily increasing over time. It’s important to be patient and not go back to old habits.

Credit reports are usually generated on a monthly basis, so it could be that you don’t see any movement at all for up to 30 days. However, when you see the effects starting to take hold, take heart from the improvement and keep doing the things that made it happen.

Tip 5 – Make Sure All Your Payments Are on Time

If you’re a person that likes to wait until the final demand arrives before paying your bills, then you need to have a rethink, as not settling them on time can have a big impact on your score. We’re talking about not just your credit payments, but also utilities and other bills like your mobile phone. 

Of course, these are good habits to get into, but failing to pay your gas, electricity and council tax can show up on your file eventually – so keep on top of them.

Approach the Issue Methodically & You’ll Get There!

Your credit score will go a long way to determining what kind of choice you get in terms of mortgage deals, so the work you do to improve it can have real value. These have just been 5 tips to aid your progress and believe us when we say there are many more things you can do besides.

If you’re looking for assistance in obtaining the best possible mortgage or remortgage deal for your needs, the REMOUK team is here to help you avoid the common pitfalls that many fall into. If you’d like to find out more about how we do that, why not visit us online at www.remouk.co.uk, where you’ll discover our full range of services for all types of buyers.

Alternatively, if you’d like to speak to a member of our team, call us today on 0113 873 0113 and we’ll be delighted to assist in any way we can. Thanks for taking time out of your day to read our blog. We’ll see you again next time.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.