What makes up your credit score? What can impact on your credit score? Sainsbury’s Bank have created a useful Infographic to answer the above and more in a guide to credit scores. Financial organisations, lenders and utility companies usually use credit scores to determine if your application will be approved. Check out the guide below for helpful tips on understanding your credit score and how to manage it.There are 3 main UK credit agencies: Experian, Callcredit and Equifax and you need a score in between 721 and 999 to be considered as a lower risk to lenders. There are many factors that impact your credit score, from how often you’ve changed address in the last 3 years, to how you pay your monthly invoices to whether you are registered in the local Electoral Roll.
Your credit score will be checked when you apply for a mortgage, so before taking any steps, make sure you’ve taken steps to improve your credit score to the best possible level. In order to do that, you will need to keep the balance on your credit cards low – less than 25%; make sure your monthly payments to utilities are regular and never late; meet monthly minimum payments on your credit cards.
Also, it is important to know you can check your credit score file before applying and check for any potential mistakes that might impact your rating. Check more details on how to improve your credit score in the Infographic below: