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Experian shares five tips for quickly improving your credit score by the end of summer

Average non-mortgage debt has declined over the past coronavirus blockages borrowers focusing on reducing the amounts they owe, based on the analysis of a credit check business.

Experiential customers had an average monthly balance on all credit accounts, excluding mortgages, of £ 9,681, compared with £ 11,615 when confinement began in late March 2020. The results suggest that some borrowers have taken the opportunity to use savings from cutting spending to get their finances in order and improve their credit scores.

Another common positive factor influencing scores was the average length of time people had a credit account. Some 41 percent of Experian CreditExpert customers had mature credit accounts that were held on average for 34 months or more, demonstrating a proven credit history to lenders.

James Jones, Head of Consumer Affairs at Experiential, say it Covid-19 pandemic has changed the way we approach our daily lives and, in some cases, our financial outlook and priorities. For some people, a reduction in spending allowed the repayment of existing loans and an in-turn improvement in credit scores.

“As the UK slowly begins to return to some sort of normalcy, people should continue to practice the good financial habits they adopted during the foreclosure, especially when it can have positive effects on your credit report. and your score. A healthy credit score can help secure low rates on future borrowing, and can therefore pay dividends. “

Experian said that the proportion of available credit that a person uses can be one of the most important factors affecting a credit score.

High credit usage can suggest that someone is at higher risk and therefore can negatively impact a score. Reducing balances between credit accounts can have a positive impact on a person’s credit report.

Experian encourages anyone who is worried about making payments for credit and other liabilities to seek help, because the sooner the situation is resolved, the sooner you will be able to control your finances and save money. improve your credit rating.

Five tips from Experian to improve your credit score

  1. Register on the voters list at your current address. In addition to helping confirm your name and address, it contributes to an Experian credit score score as it is considered a sign of stability and reliability.

  2. Regularly check your credit report and request that any errors be corrected. Make sure your report reflects the facts.

  3. Keep credit card balances as low as possible. How much of your credit card limits you use regularly can have a big impact on scores because it shows how dependent you are on credit.

  4. Limit new credit requests. Space all the credit requests you make and shop around using the eligibility verification services. This way, you will only apply for jobs that you are likely to get and avoid collecting multiple ‘hard’ search footprints.

  5. Consider letting your credit history mature. While it’s a good idea to shop around every now and then to make sure you’re getting the best deals, it will help your credit score if you let some of your credit accounts fall due. Holding the same credit card for five years can add 20 points to an Experian credit score.

What is a credit report?

A credit report is a record of all your loans, checking accounts, and a lot of other financial and public information about you – including where you live, whether you’re registered to vote, and more – that people use to check your reliability. before dealing with you.

What information is contained in a credit report?

A typical credit report includes:

  • Personal data about you – for example, your name and address

  • Details of all your credit accounts – i.e. bank accounts, credit cards, utility bills, phone accounts, store cards, and mortgages

  • Payment status – for example do you pay your bills on time

  • Refund history – for example, have you missed any payments in the past

  • Your outstanding balance – how much you have borrowed in total, by type (how much overdraft, how much on cards, how much on loans, etc.)

  • How much credit do you have – for example, you have a £ 1,000 credit card limit, but you’re only there for £ 50

  • How long have you had these accounts? The longer they are, the better your score in many cases

  • How many times you are requesting new accounts – if you just applied for 20 new credit cards, it will appear to everyone who views the report

  • Are you on the voters list

  • Have you had CCJs, IVAs or been declared bankrupt in the past 6 years

  • Do you have debts at an old address

  • Have you been the victim of identity theft

  • How many addresses are you linked to – i.e. do you have credit accounts where the payment address is not current, or different from your primary address

  • Past names

  • Financial partners – these are people you are linked with through joint accounts

Financial aid available in Scotland

Who uses credit reports?

Lots of people check your credit report – it’s not that expensive to do and it’s a quick way to find out how reliable / responsible you are.

People known to check them include:

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