How To Improve Your Credit Score
Boost your credit score to better your chances of being approved for car finance
As a motor group proud to offer both new and used car finance, we’re aware of the impact a credit score has on the lender’s decision-making process. Whilst your credit score may feel like something that’s a little beyond your control, there are ways in which you can improve it if it’s not as high as you might like it to be.
By improving your credit score, you’ll be making yourself more attractive to lenders, which can only be a good thing if you’re looking to upgrade your set of wheels and use car finance to do so.
Let’s talk about credit scores…
What is a credit score?
A credit score is a marker of your financial health; a CV for your finances, if you like. Credit agencies such as Experian and Equifax gather this information from banks, utility companies and local authorities to build a picture of what you’re like to lend money to, and how trustworthy you are at making payments on time.
How do credit scores work?
Different credit agencies use slightly different scoring systems, but in general, the higher your score, the healthier your finances look to lenders, and the more likely they are to provide you with credit.
If your score is low, you may find your options limited, which can make monthly payments less affordable for you.
The good news is that if your score is low, there are some ways in which you can work towards improving it. It may take a little while to kick in, but the sooner you make the changes, the sooner you can see your score rise to its full potential.
How can I improve my credit score?
Check for errors
Whilst all credit agencies aim to get the correct information, there may be some discrepancies that only you can spot - and they might be bringing your score down. It could even be something as obvious as your address! By getting in contact with the credit agency and making corrections, you can be confident that your score is a true reflection of your finances.
Get on the electoral roll
If you’ve not done so already, register to vote; this gives the credit agencies some reassurance that you are who you say you are, and this goes some way to bolster your score.
Pay your bills on time
A reliable payer is someone lenders don’t mind lending their money to, so proving you can do this on a regular basis is a must if you’re aiming for those top scores.
Pay off your debts
Owing money happens, but lenders do prefer that you have minimal debt already. Therefore, if you have existing debts and you’re in a position to pay them off, we’d suggest doing so to give your score a better chance of improving.
Get a credit card
Believe it or not, it’s better to demonstrate that you can responsibly manage your credit than to have none to your name. A credit card is a way you can build credit and pay it off in full each month, providing it’s used within your means.
Don't exceed your credit limit
Getting close to your credit limit is an indication to credit agencies that you’re not living within your means. Therefore, it’s best to keep your borrowing as low as possible and stay away from your credit limit, ensuring you never hit or exceed it.
Car finance at our East Anglia dealerships
When you’re ready to make the commitment of a car finance agreement, and you’ve seen a car you like at EMG, we can help get things set up for you. Our range of finance options can fit your budget and the way you approach car ownership. Simply pop into your local EMG dealership for a browse and a chat, and fall in love with your next car today.