A guide to raising your credit score
Many people will be seeing their fixed rate mortgages coming to an end and at a time when interest rates are high and lenders are re-evaluating their mortgage deals, its going to be hard to qualify for the best mortgage or the most competitive rate unless your credit report is squeaky clean. So what are the best ways to raise your credit score and have a clean credit rating to leverage your financial options when you are ready to enter a new fixed rate mortgage?
Request for your credit record
There are three main credit reference agencies (CRA) in the UK, Experian, Equifax and TransUnion. https://www.gov.uk/government/news/credit-reports-available-online-for-all-consumers. They are all authorised and regulated by the Financial Conduct Authority should you wish to make a compliant https://www.fca.org.uk/ Make a request for your credit file from all three CRAs. Because lenders do not have to supply information to all the CRAs, the information held by each agency may not match. Be aware that the CRAs will market you with products that you will not need. These products do not improve your credit score and are not based on what the average lender is looking for to qualify you for a better fixed rate mortgage deal.
Check your credit file for incorrect information or mistakes.
When you receive your three CRAs files, they will show your personal and financial information with details of accounts, credit and service utility accounts taken out, CCJs and defaults. The information will also include whether you are on the electoral register, financial links to other people and if you have been a victim of identity theft. Make a list of any possible mistakes or errors.
Correct mistakes, errors or missing information
Your credit record will hold personal information. If you spot a mistake this can be corrected by writing to the individual CRA and clearly explain why you think the information is wrong and show how. You can request the CRA to amend the entry and a copy of the amended entry to be sent to you. In the matter of the financial information if relating to a bank or finance company, and you spot the incorrect data you can request the CRA to change the information. Provide the CRA with supporting evidence to show that the information held about you is wrong.
Re-order your credit report after 6-8 weeks
The CRAs have up to 1 month from receiving your request to respond. If there are any errors or mistakes are amended, then wait at least 2 months before re-ordering your file to make sure that it is up to date.
So go ahead, get ready, plan and implement the following steps at least 6-9 months ahead before your current fixed rate mortgage comes to an end. Once completed both your personal and financial information on your credit record will be as healthy as it can be, as your credit score will have been raised which in turn will provide you with strong financial options for obtaining a better fixed rate mortgage deal.
Winnie Onyekwere
We welcome views and opinions about the issues raised in this blog. RemoveCCJUK.com can help with the auditing of your credit file and advise how to maintain a healthy credit record. Should you require help in relation to your circumstances, please use the Contact Form. Request your Free Initial Consultation or call on 0333 3444 945 and we call you back promptly.
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