Did you know there are approximately 7 million card and loan applications that are rejected by companies and lenders? Most of these rejections are due to the applicants having low credit scores that make them a high risk to lend to.
If your score is on the lower side, these are a few ways to increase your credit score:

Make sure you are on the electoral roll

If you are not o the voter’s list in your area ensure that you register at your current address. Lenders first check this when an applicant applies for a loan or credit card. If your name and address are not listed the credit score will dip. Check with your local council if you are registered or not. If not then sign up asap using the online facility.

Be punctual with repayments

Whether it is your credit card bill or a mortgage you must be punctual with your repayments. Repaying on time will create a positive credit history as lenders appreciate individuals that are prompt in repayments. Those with mortgages and prompt in repayments of their premiums have it increase their credit score. Tenants can also choose to register so that their rental payments can further help to boost their credit ratings.

Open a savings account with a credit-builder

A good way to boost your credit score is to open an account with any of the credit builder apps or accounts like Pave, Bits etc. Saving a small sum every month reflects well to lenders that you are careful with handling your finances. You could set up a direct debit from your bank for a small sum that will add up within a year.

Consolidate accounts

If you have any accounts that are seldom used consider consolidating them to limit your lending to a few accounts that are well maintained that will reflect positively on your credit history and score. Accounts that are rarely used may lower the credit score because credit reference agencies evaluate the cumulative credit limit for score calculation. Also, when spending, do not use up the credit card limit and maintain a balance within limits.

Keep track of your credit history

This is easy to do but surprisingly many people overlook checking their credit history at regular intervals. It is always possible that a company or lender can make a mistake leading to inaccurate information appearing on your file. This will result in it negatively impacting the credit score. If you do notice any errors report them to the concerned lender at the earliest for it to be removed. Checking your score will not impact it as it shows up as a soft search and is only visible to the account holder. There are several ways to conduct a free credit score check online.

If you are a joint account holder with an individual their credit history also can impact your credit score if they have poor credit ratings. If there is a joint account not in use it is best to close it.