Now, more than ever, a good credit score matters. With a solid score, a consumer can get the best rates on loans. Unfortunately, most people do not know how to go raise their score. Luckily, one only has to take a few small steps to increase their score significantly. Here are four tips to increase your credit score in the UK.
Fix: Oftentimes, credit reports contain inaccurate information. A consumer must examine his or her profile and verify that all the information is correct. If the report has inaccurate information, the consumer must contact the bureau to remove the erroneous information. When getting negative information removed, one can see their score rise quickly.
Pay off debt: When deep in debt, a consumer will have difficulty in maintaining a high score. A serious person who wants to increase their credit score must start the process by paying off debts. When paying off debts, a consumer will see their score rise dozens of points.
Close old accounts: When a person is not using an old credit card, they should shut down the account. Old accounts that lie dormant will hurt the score of a consumer as it counts towards the amount of available credit the consumer has.
Open a card: A person with no established credit should open a credit card immediately. When opening a card account, one will see their score rise quickly. One must remember that to have a decent credit score, it is necessary to have a few established credit lines.
Ideally, a person should check their report often to verify that everything is correct. Not only that, a consumer must understand the reasoning behind a credit score, that way he or she can do what it takes to fix their credit score.