How to Improve your Experian Credit Score

experian credit score -your-score

Okay , firstly let me be really clear  – there is No magic formula for this, I’m not going to talk you through loads of false ideas or get you to pay to get a ‘super fast new & improved credit report by clicking here ! ‘    No,   in this section and the next few pages we will look at what really works, and what doesn’t, and I’ll try to educate you in key things you can do that will make a difference.

We will look at key factors that can affect you, and most importantly how to read your own Experian credit report so you can fix it !

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Okay  firstly  you need your FULL copy of your experian report, which you can get by going to  Experian.co.uk    No  I don’t get any commission from them, but they are one of the top 3 credit reference agencies and Ideally you should check and correct all 3 !  – Too much hassle or cost?  Okay let me stop you right there ! – If its too much hassle and cost to spend half an hour and £10 getting each of your credit reports in order – then think again, because a mortgage is probably your BIGGEST monthly financial cost !

Top 5 things to do  to Fix you credit score!

  1. FIX any incorrect entries  –  I cant say this LOUD ENOUGH  – most peoples credit reports have some inaccuracy somewhere – and if you’ve just come from a place of bad credit, then this is certainly something you want to check that all the entries show correctly.  If you have bee discharged from bankruptcy,  then all the entries linked to those debts should show as ‘default – partially settled ‘ or even ‘settled ‘
  2. Make sure you  are on the Voters Roll  for your current address  – Credit ref agencies place some level of emphasis on this as it is a government way of identifying, who lives where  – if that matches , then it helps ‘prove’ you are who you say you are , and that goes along way to prevent ID fraud etc  – so its very important to have it up to date.
  3. Don’t Overuse credit cards to build your score  – I know you might have been told ” get a credit card and use it, that way it will boost your score to miraculous heights ”  – well whilst not bad advice  – it’s not totally great,  Credit ref agencies systems look at how much debt you have against available credit,  so if you have a credit card with £1,000 limit on it and you run it up to £900 each month and then fully pay it off  – whilst you might think that shows an ability to pay £900 pcm  – to a credit system it says you are typically using 90% of available credit each month  – and that’s not great!  it says your almost at the max of any allowed borrowing right now !  – If you have a credit card by all means use them and repay them each month but try to keep the borrowing to 20% –  50% of the max credit limit, and of course do make sure you make ALL payments on time.
  4. Manage your bank account well –  even if you have an approved overdraft limit, lenders don’t like seeing people with – minus symbols on their bank accounts each month, its says your living outside your everyday means.  Make sure all direct debits are paid and don’t bounce as any unpaid credits really do reflect badly – a lenders view is   ” well if the £29 sky DD bounce – what hope have they of meeting the £500 Mortgage direct debit ? ”    I’m sure you can see the logic behind that – so manage the bank account well,  get rid of any unnecessary monthly direct debits  – eg  Lotto etc   and ideally show that your bank account has a slowly rising surplus each month – wow that would be really good !
  5. Avoid PayDay Loans  – like the plague  – most lenders wont lend if anyone has had a payday loan in the last 12 months, as it shows them  that you cant manage everyday finance without having to resort to expensive lending.
  6. Don’t apply for loads of credit or searches – ( Oops!  – I must learnt to count ! ) whilst you might be tempted to scour every website on the planet for the best possible mortgage deal, just be aware that multiple searches will damage your credit score.  Typically if you have more than 5 lenders credit searches in a 6 month window, you may see it impact on your actual credit score.  (  Don’t worry  – you applying for your credit reports and running your own credit report won’t count against you).

Well that’s a good start  – don’t forget to read the rest of these pages for more tips and ideas !  Ooh  and would be really nice of you if you would leave a google maps review rating !  Click here to leave a quick 5 star rating