Tips to help improve your credit score

Everyone should take time to manage and boost their credit score. It’s no longer just about whether you can get mortgages, credit cards and loans, it can also affect mobile phone contracts, monthly car insurance, bank accounts and more. Here’s what you need to know about credit checks and how to boost your credit score.

A credit rating is an indication of how a typical lender would assess you. When you apply for credit, each lender tries to predict your future behaviour based on the way you’ve acted in the past.

A credit blacklist is a myth and highly misunderstood. Every lender assesses you differently based on their own principles. If you have been rejected by one lender it doesn’t mean you will automatically be rejected by another. Alchemy Money may be able to help you even if you have been rejected by other lenders or have a history of bad credit.

Credit scores can affect lots of things:

• Mortgages
• Credit cards
• Loans
• Utility bills
• Mobile phones
• Car and home insurance

Credit history data is being shared by more and more companies.

So how can you improve your credit score?

Boosting your credit score is about making yourself look attractive to lenders. Credit scoring is about predicting future behaviour. Even if you have bad credit history, it’s possible to fix this by showing lenders your recent behaviour toward credit and payments has improved.

Registering to vote is another way to boost your credit score. Lenders look at things like commitment and stability when they are assessing whether they want to lend or not.

Are you financially linked to someone else who has a bad credit history? For example, sharing a bank account. This can affect your chances of getting credit.

Check your credit file. There are a number of credit agencies out there that can show you your current credit score and what you need to do to fix things.

Use a pre-pay credit card. These can be a great way to re-build bad credit history.

As a nation, we don’t have a right to be lent money. While the Government pushes lenders to offer more credit ultimately it’s still a commercial decision. Alchemy Money work hard to secure lending to customers who have found it impossible to gain credit elsewhere. Contact us today to see if we can help you.