A good credit score usually takes time to build up as it is based on your credit history of making payments on time, however there are ways of improving a low score, which include:

  1. Registering on the electoral role

Make sure that your name is on the electoral register

  1. Check for mistakes on your credit file

Make sure that all your details and credit history are correct. If you find any errors report these immediately to the credit reference agency. They have 28 days to remove the information or tell you why they don’t agree with you. During that time the ‘mistake’ will be marked as ‘disputed’ and lenders aren’t allowed to rely on it when assessing your credit rating. It is also worth speaking directly with the credit provider you believe is responsible for the incorrect entry.

  1. Pay your bills on time

Whether that is your phone, internet contract, store card, service charge as it is a great way to prove to lenders that youre capable of managing finances effectively.

  1. Check if you are linked to another person

This could be a partner, friend or family member if you have any joint accounts or have made joint purchases because oif they have a poor credit score this could affect yours.

  1. Check for fraudulent activity

It could be that someone has applied for credit in your name without your knowledge. If you believe this is to be the case you should contact the credit reference agency immediately to have your file updated.

  1. County Court Judgements (CCJ’s)

Receiving any court judgements for debt, will have a serious impact on your credit score. You should seek debt advice if you are struggling to make payments. Doing nothing will only make matters worse and could impact of lending availability.

  1. Eliminate or reduce high levels of existing debt

Ideally this should be done before you make a mortgage application.

  1. Avoid payday type loans

Payday type loans do not have a positive impact on credit scoring and lenders may view this as poor management of your finances.

  1. Moving home a lot

Lenders feel more comfortable if they can see evidence that you have lived at one address for a considerable period. Something to bear in mind.

It makes sense to get started on improving your credit score sooner, rather than later, so you are well prepared for when you find the home you want to buy.