By Chris Ringham 23 Aug, 2019 0 Comments

6 Easy Ways First Time Buyers Can Improve Their Credit Score

6 Easy Ways First Time Buyers Can Improve Their Credit Score

If you are looking to get on the housing ladder, having a good credit score rating can be a fundamental factor in securing a financial agreement such as a mortgage. So what credit score is needed to buy a house? There is no universal credit rating score needed to buy a house, as conditions will vary with different lenders, but according to Barclaycard, anything over 881 can be considered "good," and anything over 961 can be classed as "excellent".

Buying your first home? Download our First Time Buyers Guide today!
So, how can your credit score be improved? In this article we look at six sure-fire ways to get your credit rating up to scratch:

- Use a credit card little and often

You might associate credit cards with a financial product that can damage your credit rating, but you'd be wrong.


Does Having A Credit Card Improve Your Credit Score?

The short answer is yes, as long as you have been repaying it consistently. Using a credit card doesn't mean you need to start spending a lot. Just a couple of purchases a month will suffice, but you should make sure that the balance has been repaid at the end of the month. This demonstrates that you can manage credit responsibly.

- Keep credit utilisation low

In general, you should aim to keep your credit utilisation low. That means closing any store cards, mobile contracts, credit cards or direct debits which are unused.

- Make sure you're on the Electoral Roll

Getting on the electoral roll can help your credit rating, because it gives prospective lenders the opportunity to check your details, including your name and address.

- Don't make multiple credit applications in a short space of time

You should be wary of making lots of credit applications within a short period, as this can harm your chances of getting accepted. Try to space out your credit applications, rather than using an approach which involves multiple applications in a short period. Don't apply for products you don't need.

- Get your name on some utility bills or a phone bill, etc.

Ensuring that your name is on bills such as electricity, gas and water - and that you have paid those bills - can be another credit rating improvement strategy.

- Make sure you pay bills on time

Following on from the point above, it is vital that you pay all your bills on time. This is recognised as one of the most effective ways to drive up your credit rating.

So there you have it - six ways in which you can build your credit rating in the UK. If you aren't confident of having the sufficient credit score to buy a house, don't despair - use the tips above to start bumping up your score.

Received a mortgage offer? Bowsers can give you advice - call us today on 01945 583 194.

New call-to-action

6 Easy Ways First Time Buyers Can Improve Their Credit Score

By Chris Ringham 23 Aug, 2019 0 Comments

If you are looking to get on the housing ladder, having a good credit score rating can be a fundamental factor in securing a financial agreement ...

Continue reading

How Long Does A Decree Nisi Take Once Applied For?

By Chris Ringham 26 Jul, 2019 0 Comments

Although divorce is something that you hope never to go through, it cannot always be avoided. The problem for many people is that, if it does...

Continue reading

Should I Negotiate My Commercial Lease Renewal?

By Chris Ringham 25 Jul, 2019 0 Comments

Tenants of commercial properties often face turbulent times around their lease expiry date. Indeed, it is common practice for landlords to propose...

Continue reading

Fixed Rate VS. Variable Interest Rate Mortgages

By Chris Ringham 24 Jul, 2019 0 Comments

When you're browsing different types of mortgages, you've doubtless come up against many different kinds. The answer to the question "what are the...

Continue reading

Discrimination In The Workplace: 4 Steps To Taking Legal Action

By Chris Ringham 22 Jul, 2019 0 Comments

Feeling discriminated against in the workplace can be an overwhelming and unpleasant experience for employees and, left unchecked, can lead to...

Continue reading

Can I Get A Divorce Without My Spouse's Consent?

By Chris Ringham 21 Jul, 2019 0 Comments

There is no doubt that divorce is one of the most monumental things that some of us will experience in our lives. However, it can be the only...

Continue reading

Subscribe Here!

the-conveyancing-process-explained-guide

Recent Posts

New call-to-action