There is probably no worse nightmare for a new tenant than to locate the home of your dreams only to have your application turned down due to a bad credit rating. So what can you do to make sure that the dream doesn’t turn sour? LetBritain’s guide to acing your credit check is here to help keep you in the clear with our list of helpful hints and tips to get you moving towards your ideal home.
First things first, it is essential that you have a copy of your credit record. In some instances, the provision of a credit record may incur a small charge. There are three particular places where you can locate one; Equifax.co.uk, Experian.co.uk or CallCredit.co.uk. The higher your score, the more likely that you will be accepted and the greater the rate you should receive.
Get yourself in order financially by paying all of your bills on time. This shows lenders that you are stable financially and can be depended on. If possible, pay back more than required when it comes to minimum repayments. Any outstanding credit card statements can be viewed as piled up debt so paying off as you go is essential. Outdated agreements and out-of-date cards should be cancelled as they can appear to look like future debt to lenders which is something you won’t want to be associated with!
Apply for credit when it is required but don’t do it unnecessarily. Lenders perceive such haphazard applications to several avenues at once as desperation connected to dire financial circumstances. As such it is better to avoid this entirely.
When browsing your credit record, look out for any errors or faults and contact the company to have these rectified. If you have endured financial hardships and overcome them, ensure that this is written on your statement so that lenders understand that this period of difficulty has concluded. It is also possible to add clarifying details emphasising how certain instances were resolved or why they occurred to help lenders garner a better understanding of your circumstances.
Joint accounts mean that sometimes another person is also responsible for your credit rating. Ensure that you sever old financial ties that no longer serve you, for instance prior relationships or marriages that have now terminated.
If your credit history is far from clean and you don’t know what to do about it, there are cards designed to build credit. Aqua, Luma and Vanquis are three such options that you should consider. If you can follow the rules appropriately then gradually you will rebuild your credit profile and be eligible for greater rewards.
Keep an eye on your spending. Don’t buy what you don’t need. If you can’t afford it, don’t buy it. Ensure that you spend money within your means.