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

What You Need To Know About Help To Buy ISAs

By Chris Ringham 30 Oct, 2019 0 Comments

If you’re a first-time property buyer, you’ve probably heard of the Government’s Help to Buy ISA scheme. Designed to help people who have never...

Continue reading

What Is The Cost Of Applying For Probate?

By Chris Ringham 27 Oct, 2019 0 Comments

Applying for probate is what you have to do if you want the legal right to someone's money and property after they have passed away. If the...

Continue reading

3 Things You Need To Know About Typical Probate Procedure

By Chris Ringham 24 Oct, 2019 0 Comments

Probate is the formal process of disposing of a deceased's effects and assets in line with their will. In most cases, the deceased will have...

Continue reading

What Is The Probate Process In The UK?

By Chris Ringham 11 Oct, 2019 0 Comments

Probate is the term used to describe the financial/legal processes involving the possessions, property and money of a person who has died. Before...

Continue reading

What Is The Average Probate Time Scale?

By Chris Ringham 05 Oct, 2019 0 Comments

Probate is never an easy subject to talk about due to the subject matter involved. When a close friend or family member has passed away, you may...

Continue reading

4 Qualities To Look For In An Estate Agent

By Chris Ringham 01 Oct, 2019 0 Comments

We believe that one of the best and most important pieces of advice for people looking to sell a property is to thoroughly research estate agents...

Continue reading

Subscribe Here!

the-conveyancing-process-explained-guide

Recent Posts

New call-to-action