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Apps such as ClearScore have made it easier than ever to check your credit rating instantly. Credit scoring is based on a huge range of factors, and your credit score can change over time depending on your circumstances. Credit scores are a measure of how risky the banks or other financial institutions think you are – will you pay back any money they let you have? In general terms, the higher the number, the better the credit score and the more likely you are to be successful when applying for a car loan or mortgage.

If on the other hand your credit score is on the low side, you might struggle to get a credit agreement at all. The good news is that there is lots you can do to affect your own credit score and get the numbers climbing upwards. Often, low credit scores aren’t necessarily because you’ve done anything wrong in the past; people who have never before taken out loans or credit cards will find their scores are lower just because they have no track record to be judged against.

Good Money Management

Perhaps the most important thing that lenders are looking for when deciding who to lend money to is someone who is responsible in managing their finances. They want to see someone who never struggles to make payments on a loan, who doesn’t make late payments and who doesn’t skip payments altogether. Being organised with your finances isn’t easy though and if you’re juggling work, kids, and lots of other responsibilities, it’s easy to take your eye off the ball.

We’d always advise setting up direct debits from your main current account to pay off a loan or credit card automatically. Once set up, the direct debit agreement will make sure that your monthly phone contract or loan repayment leaves your account on the same day every month. If you run into financial difficulties, then contact the lender straight away rather than allow a payment to be missed.

Borrow Responsibly

Overstretching yourself is going to increase the chances of you getting into difficulties. Lenders do look at affordability when assessing whether you should have another loan or credit card, but there is no compulsion to use all the credit you have been offered. Owing less than you have been allowed to borrow goes in your favour. Credit scoring firms can look at how much credit you have available across all loans or agreements, not just from one particular provider.

Don’t Chop and Change

Sticking with a few loans or accounts over a longer period is seen more positively than chopping and changing your credit card provider regularly. If you have had the same credit card or mobile phone providers for years and have never missed a payment, then this is going to give you more “points” than someone who has only had a credit card for six months and has a shorter record with the company. Checking your credit report online should also flag up any unusual activity on your record which could indicate identity fraud, enabling you to take instant action before a fraudster does lasting damage to your score.

Register to Vote

This is perhaps the most important thing you can do to boost a credit score. All lenders will make sure that you live where you say you do by checking against the list of registered voters. If they can’t find you, then you are likely to be declined straight away. Getting onto the electoral register is free and can be done at any time, just Google “register to vote” to be taken to the official government site.