New Year New Credit Score

1st Jan 2024

When you apply for a loan, mortgage or other form of credit, the state of your credit score is the biggest factor in getting approved for your credit on favourable terms. If your credit score isn’t as healthy as it might be, then that could drastically affect your ability to get credit. If your New Year’s Resolution is to give your credit score an overhaul, here’s all you need to know about improving your financial position through 2024.

Understanding Your Credit Score

Contrary to common belief, there is no one credit score system which applies to everyone. This is due to there being three major credit rating agencies in the UK—Experian, Equifax, and TransUnion. Each of these have their own credit scoring systems. These agencies calculate scores differently, considering various factors such as your credit history, current credit usage, and payment history. Although the actual numbers may differ depending on which agency you are looking at, the general state of your credit score will be the same wherever you are looking at your report. Here at Credit Check Online we have our own smart credit check report to help you make sense of the jargon.

Strategies to Boost Your Credit Score

Even if your credit report shows that your credit rating is above average, there is still value in trying to get those numbers even higher. A strong credit score will make it even easier to get access to the best deals on the market, reserved for customers whose track record shows they are most likely to pay the money back. Some of the key ways to enhance your credit score in 2024 are:

1. Ask for a copy of your credit report and check it carefully in case there are any mistakes.
2. Ensure they have the right address details for you and inform banks and other lenders if you have recently moved.
3. Register to vote, as being on the electoral register will instantly boost your credit score.
4. Never miss a repayment. One of the most important things you can do is make sure that all existing payments are made in full, and on time.
5. Be cautious about financial links such as joint accounts. If you have a joint account with someone whose credit score is much worse than yours, this can reflect badly on you.
6. Limit credit applications to avoid multiple 'hard' credit searches in a short timeframe.
7. Avoid cash withdrawals on credit cards, as credit score agencies see this as a sign of poor financial management.
8. If you have a less-than-perfect credit score, think about taking out a credit repair card.
9. Steer clear of payday loans.
10. Look at any unused credit card accounts you have and think about whether closing them would improve your financial picture.

Improving your credit score is a gradual process and you shouldn’t expect instant results. However, if you follow the steps outlined above, you should be ending 2024 in a much better financial than you started it in.