How To Improve Your Credit Score Rating

How To Improve Your Credit Score Rating

If you’ve struggled with bad credit in the past, you might be wondering what you can do to boost your score, especially if you’re looking to get a mortgage.

Having a bad credit score can negatively impact your chances of getting accepted when you apply for loans, including a mortgage. In this case, it’s likely you’ll need to speak to a specialist mortgage advisor about getting a bad credit mortgage.

Your credit score isn’t only an important part in getting a mortgage, but also getting accepted for things like credit cards and even mobile contracts.

There are options out there for those in this situation, and we can help. Adverse Mortgage Advisors specialises in adverse credit, we have contacts who are willing to accept mortgage applicants with bad credit and low credit scores.

What is a Credit Score Rating?

Since lenders don’t know you personally, they use your credit score rating to see how reliable you are with repaying money. The higher your score, the more likely they are to accept your application.

When you apply for a loan, this score will be used in your form.

The largest credit rating company in the UK is Experian which rates you between 0 and 999. There are five categories, very poor, poor, fair, good and excellent. ‘Excellent’ Experian credit scores will usually sit between 961-999.

However, with Equifax, you are rated between 0 and 700, with 466 to 700 being considered ‘excellent’. It’s important to note that lenders won’t always use the same scoring system, but you don’t need to worry about this.

The Difference Between a Credit Score Rating and Credit Report

Your credit score rating and credit report are two different things and can get easily confused.

Your credit rating is the number used to sum up your creditworthiness, usually classed from ‘very poor’ to ‘excellent’.

Your credit report is a lot more detailed. It looks into your financial history, including more personal information such as present and past credit accounts, credit enquiries and public records.

Credit scores and reports are important, but just because you have a low score doesn’t automatically mean your mortgage application will get rejected.

Speaking to a specialist mortgage advisor is the best way to increase your chances. At Adverse Mortgage Advisors, we have lenders on our books who are happy to accept applications, no matter your credit history.

What Impacts Your Credit Rating?

If you’re looking for a mortgage and would like to get the best deal possible, it’s handy to understand what can negatively affect your score.

This way, you can avoid decreasing your score even further and start to build a better rating.

The main things to look out for include:

  • Making late payments, missing payments altogether and defaulting on a payment agreement.
  • Going over your credit limit.
  • Bankruptcy.
  • County Court Judgements.
  • Frequently opening new bank accounts.
  • Constantly being close to your credit limit.

How To Improve Your Credit Score

It’s no doubt that the better your credit score, the better mortgage deal you can get. So, if you’re wanting to do all you can to improve your score, there are a couple of steps you can take that will support your finances, these include:

  • Make all credit payments on time, this can impact your score significantly.
  • Spend on a credit card but stay within your limits. Set up direct debits to avoid missing repayments as missing these payments will only harm your score further.
  • Avoid payday loans and pay later schemes such as Klarna.
  • Disassociate yourself from anyone you have previously had joint accounts with as their credit history can impact yours. You can do this by contacting the Credit Reference Agency.
  • Pay off outstanding debts and County Court Judgements.
  • Make sure you’re registered on the electoral roll.

Bad Credit Mortgages

A bad credit mortgage is a type of mortgage for people with low credit scores, adverse credit and a history of bankruptcy etc.

Although the majority of lenders prefer buyers with a good credit score and no history of missed payments, there are lenders out there willing to offer mortgages to those with bad credit.

With bad credit, you might be expected to do the following:

  • Pay a larger deposit.
  • Pay higher interest rates.
  • Have a good, substantial current income.

We have access to plenty of lenders who won’t check your credit score, making you just as likely to get accepted for a mortgage. Simply get in touch with us to find out how we can help.

How To Check Your Credit Score

You can check your credit report by signing up to any of the blow credit agencies. Our preferred report is checkmyfile as it appears to be more comprehensive and reliable and enables the researching for the right lender to be more accurate. You can obtain your free 30 day trial by clicking here.





UK Credit Ratings

Money Supermarket Credit Monitor

To Sum Up

Your credit score isn’t fixed, so you can improve your score to get better deals when applying for credit. Bad credit mortgages are also a great option for those with a low credit score.

No matter your score, we can help you find a lender willing to offer a mortgage deal.

Adverse Mortgage Advisors specialise in dealing with these types of mortgages, so if you would like to find out how we can help don’t hesitate to get in touch today. Give us a call on 01268 294777 or email us at info@adversemortgageadvisors.co.uk.

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If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.

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