Why is it that you’re not often taught about your credit score at school? Really, you should be, it’s a valuable asset and it’s an asset that can be leveraged to make life a little bit easier if you know how to keep it healthy. Having a good credit score will open you up to the best deals and interest rates the next time you’re looking for a personal loan, a new car or even a mortgage.
However, it’s not uncommon to feel confused when it comes to your credit score, what exactly is it and how is it influenced for better or worse?
Details of your credit history are kept on file by credit reference agencies, and this is how lenders access your personal information whenever you apply for finance. Your profile will contain information such as your current address (taken from the Electoral Roll) and how you’ve managed any previous credit. So, if you have a history of missed payments then this will work against you as lenders will view you as more of a risk. Due to this increased risk, higher interest rates are usually applied as a result.
However, just because you’ve struggled with credit difficulties in the past, that doesn’t mean you won’t be able to get finance. Check out this bad credit guide from Stoneacre for more information.
Understanding your credit score, and taking steps to improve to improve it will put you in a stronger financial position in the future. Even simple things such as registering on the Electoral Roll and meeting your payments on time will help.
Check out the infographic below if you’re looking for ways you can improve your credit score.