Banks will decide to lend you money based on what your credit report shows. It is important that you come across as a responsible and trustworthy borrower. If you want to enjoy low interest rates, use these four tips to improve your credit report.
Check your debts
When you get a copy of your credit report, go through it carefully to determine all the debts mentioned in it are your own. If you don’t recognise a debt, challenge it. Get in touch with the credit reference agency or the lender as you may be a victim of identity and credit fraud.
Clear your debts on time
Check your existing debts, especially your credit card dues. Make sure you pay all your debts on time. If your credit card limit is £2,000 and you have used just half the amount, clear that amount as lenders will take into account the entire credit limit and not what you have used.
Apply for credit only if you know you will accepted
Each time you apply for credit, the search conducted by the lender appears on your file. This can put off other lenders. If you are keen on applying for credit, make sure it has a high possibility of acceptance. Get the lender to run a quotation search instead of a full credit search as it will not reflect on your credit report.
Register on the electoral roll
If you are not registered on the electoral roll at your current address, lenders can refuse you credit. Refusal or denial of credit is a blemish that reduces your credit score.
Improving your credit report will make you a more attractive borrower. However, there could be times when you want access to quick short-term loans that conventional lenders don’t offer. Under such circumstances, you can check the allthelenders website, the UK’s first price comparison website for short-term and payday loans.