If you want to apply for loans, finance or a mortgage, then having a good credit score can increase your chances of getting accepted. If you have a poor credit history or no credit history, then you might struggle to get credit. The good news is that there are some things you can do to boost your credit score.
Check for errors
The first thing to do if you are worried about your chances of getting credit is to check that all the information on your credit file is correct. Check your name, current address and previous addresses are correct. Check that all the accounts linked to your credit file are yours, and that you aren’t still financially associated with any ex-partners. If there are any errors or inconsistencies, get these corrected before you apply for credit.
Pay bills on time
Late payments can lower your credit score, so if you are thinking about applying for credit, make sure you are paying all your bills on time. This includes mobile phone bills, utility bills and credit card bills. Bring all your payments up to date before applying for credit so there is nothing outstanding on your file. Even if you aren’t applying for credit, clearing your bills might boost your credit rating for future credit applications.
Reduce your credit card balance
If you have a high level of existing debt, this can raise concerns for lenders. Don’t apply for more credit if all your existing credit cards are completely maxed out; wait until you have cleared them down a little. This will show that you are living within your credit limits, which can boost your credit score.
Consider a credit card
When you apply for credit, one of the things lenders take into account is how high-risk you are. If you have a good track record of managing credit, this can boost your credit score. There are some credit cards available to those with bad credit or people with very little credit history. These tend to have lower credit limits and higher interest rates. Make your usual monthly purchases using your credit card, then pay your balance in full to avoid interest charges. This can help you build up a good credit history.
At Morses Club, we provide cash loans, and occasionally we may be able to accept customers who have bad credit, have been rejected by other providers or are searching for bad credit loans. This is not guaranteed; every situation is unique. As responsible lenders, we only lend to customers who can afford to pay back what they borrow. If you’ve been considering bad credit loans, visit our how it works page to find out more about how we might be able to help.