{"id":638,"date":"2022-04-13T12:21:34","date_gmt":"2022-04-13T12:21:34","guid":{"rendered":"https:\/\/www.drafty.co.uk\/blog\/?p=638"},"modified":"2024-02-20T11:04:30","modified_gmt":"2024-02-20T11:04:30","slug":"ways-to-build-your-credit-rating","status":"publish","type":"post","link":"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/","title":{"rendered":"10 ways to build your credit rating"},"content":{"rendered":"\n<p>Whether you\u2019re looking for a mortgage or want to get a car on finance, you need a good credit score. Many loan providers rely on a good score to determine your reliability, so it\u2019s worth taking a closer look at your credit rating.<\/p>\n\n\n\n<p>For those struggling to get credit of any kind, it might be because you have a limited credit history. For example, if you\u2019ve never taken out a phone contract, car finance or anything similar, you might be deemed unreliable in the eyes of a lender.<\/p>\n\n\n\n<p>Another reason you might be struggling to get credit is due to erratic or missing repayments. Credit lenders like to see consistent repayments, on time and in full. So, if your history is all over the place, that could explain your poor credit score.<\/p>\n\n\n\n<p>The good news is there are things you can do to boost your credit score, and some are very straightforward fixes. It\u2019s easy to feel overwhelmed when assessing your credit rating, which is where Drafty comes in. This blog details ways you can boost your credit score and prove yourself as a responsible borrower \u2013 helping you build a bright future.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#1_make_sure_youre_on_the_electoral_register\" >1. Make sure you\u2019re on the electoral register<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#2_check_your_credit_history_files\" >2. Check your credit history files<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#3_ensure_you_make_your_existing_credit_repayments_on_time_every_time\" >3. Ensure you make your existing credit repayments on time, every time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#4_dont_make_multiple_credit_applications_in_a_short_space_of_time\" >4. Don\u2019t make multiple credit applications in a short space of time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#5_start_your_borrowing_off_small\" >5. Start your borrowing off small<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#6_get_a_credit_rebuilding_credit_card\" >6. Get a credit rebuilding credit card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#7_consider_cancelling_your_unused_credit_or_store_cards\" >7. Consider cancelling your unused credit or store cards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#8_try_a_lower_interest_product\" >8. Try a lower interest product<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#9_use_your_landline_phone_number_on_applications\" >9. Use your landline phone number on applications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#10_check_your_credit_files_annually\" >10. Check your credit files annually<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/#consider_a_line_of_credit_from_drafty\" >Consider a line of credit from Drafty<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_make_sure_youre_on_the_electoral_register\"><\/span><strong>1. Make sure you\u2019re on the electoral register<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Getting on the <a href=\"https:\/\/www.gov.uk\/electoral-register\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">electoral register<\/a> helps lenders check your credit rating. It shows your full name and address, as well as demonstrates that you\u2019re a legitimate person living in your community.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_check_your_credit_history_files\"><\/span><strong>2. Check your credit history files<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Mistakes in your credit file can affect your loan or credit eligibility. Incorrect address details, admin issues and other errors can prolong your credit applications too. So, if you\u2019re looking to improve your credit rating or want to borrow money, be sure to investigate first. Want to know more? <a href=\"https:\/\/ico.org.uk\/your-data-matters\/credit\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Take a closer look here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_ensure_you_make_your_existing_credit_repayments_on_time_every_time\"><\/span><strong>3. Ensure you make your existing credit repayments on time, every time<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This one is important. Repaying credit includes anything from mobile phone bills, credit card payments or car insurance. Paying credit back on time suggests to a lender you can cope with financial responsibilities. Remember, the more erratic and unpunctual your repayments are, the more likely you are to have a <a href=\"https:\/\/www.drafty.co.uk\/loans\/bad-credit-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">bad credit rating<\/a>. So, keep on top of your repayments and watch your credit score increase.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_dont_make_multiple_credit_applications_in_a_short_space_of_time\"><\/span><strong>4. Don\u2019t make multiple credit applications in a short space of time<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re trying to improve your credit score by utilising a short-term loan or a <a href=\"https:\/\/www.drafty.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">line of credit<\/a> \u2013 be conscious of how often you apply. Each application (whether accepted or not) stays on your file for around a year. If you\u2019re trying to improve your credit rating, avoid applying for lots of credit in a short period \u2013 this sends a red flag to lenders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_start_your_borrowing_off_small\"><\/span><strong>5. Start your borrowing off small<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019ve never had credit, you might find it hard to build your credit score. So, try applying for something with a lower value to begin with. For example, a cheap mobile phone contract will help boost your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_get_a_credit_rebuilding_credit_card\"><\/span><strong>6. Get a credit rebuilding credit card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A credit rebuilding credit card is one with a small limit but a high interest rate. The idea is you put some day-to-day purchases on there and pay off what you owe at the end of the month. Using a credit rebuilding credit card correctly shows you can manage this type of borrowing \u2013 a good signal for future lenders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_consider_cancelling_your_unused_credit_or_store_cards\"><\/span><strong>7. Consider cancelling your unused credit or store cards<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When looking at how to boost your credit score, you should look back at your past cards. You might have several cards with a balance of \u00a30 that you no longer use. If that\u2019s the case, you might want to cancel them so their credit limits don\u2019t count against you for future borrowing.<\/p>\n\n\n\n<p>However, if you\u2019ve had a card or two for a long time and you\u2019ve consistently managed your repayments, this could work in your favour as it demonstrates to a lender that you can handle financial responsibility. That being said, everyone\u2019s case is different, so it\u2019s worth digging a little deeper to get some more advice. Martin Lewis, the money-saving expert, goes into <a href=\"https:\/\/www.moneysavingexpert.com\/loans\/credit-rating-credit-score\/#needtoknow2-22\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">more detail here.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_try_a_lower_interest_product\"><\/span><strong>8. Try a lower interest product<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Borrowing money at a high interest rate isn\u2019t ideal, but if you have a poor credit history and a bad credit rating it&#8217;s likely to be your only option. However, <a href=\"https:\/\/www.drafty.co.uk\/compare-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">a\u00a0credit line is different to a standard loan<\/a> as there\u2019s no end date; you can withdraw up to your credit limit at any time and are <a href=\"https:\/\/www.drafty.co.uk\/about\/pricing\/\" target=\"_blank\" rel=\"noreferrer noopener\">only charged interest on what you use<\/a>. By borrowing and repaying on time over a sustained period, your credit file may start to show that you have responsibly managed this type of borrowing. A <a href=\"https:\/\/www.drafty.co.uk\/about\/aboutus\/\" target=\"_blank\" rel=\"noreferrer noopener\">Drafty credit line<\/a> works in this way and we have tonnes of reviews from extremely happy customers, which is why we\u2019re <a href=\"https:\/\/uk.trustpilot.com\/review\/drafty.co.uk\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">rated \u2018Great\u2019 on Trustpilot<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_use_your_landline_phone_number_on_applications\"><\/span><strong>9. Use your landline phone number on applications<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having a fixed-line number may help with security checks and provide evidence of stability, along with the number of years you\u2019ve lived at your current address.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_check_your_credit_files_annually\"><\/span><strong>10. Check your credit files annually<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Checking your file with credit reference agencies at least once a year can help flag any potential issues. And be sure to check a few months before you plan to make any major applications like a mortgage, just to make sure everything is as it should be.<\/p>\n\n\n\n<p>You can check your credit score for free through companies like <a href=\"https:\/\/www.experian.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Experian<\/a> or directly from other credit agencies. MoneyHelper has more information about <a href=\"https:\/\/www.moneyhelper.org.uk\/en\/everyday-money\/credit-and-purchases\/how-to-check-your-credit-report\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">how to access your credit score<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"consider_a_line_of_credit_from_drafty\"><\/span><strong>Consider a line of credit from Drafty<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019ve read this and see yourself as financially responsible, <a href=\"https:\/\/www.drafty.co.uk\/application\/apply\/\" target=\"_blank\" rel=\"noreferrer noopener\">apply for a Drafty line of credit<\/a> today Representative 96.2% APR (variable). If you meet your repayments, you can boost your credit score through a <a href=\"https:\/\/www.fca.org.uk\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Financial Conduct Authority<\/a>-regulated company.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> We are not providing financial advice, these are just tips for informational purposes. Also, we are not affiliated to any of the external parties, these links are provided for reference only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you\u2019re looking for a mortgage or want to get a car on finance, you need a good credit score. Many loan providers rely on a good score to determine your reliability, so it\u2019s worth taking a closer look at your credit rating. For those struggling to get credit of any kind, it might be [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":768,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-638","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-research"},"_links":{"self":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=638"}],"version-history":[{"count":5,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/638\/revisions"}],"predecessor-version":[{"id":1089,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/638\/revisions\/1089"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media\/768"}],"wp:attachment":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}