Can I Improve My Credit Score Fast?
In today’s economy, having a good credit score is key to securing affordable finance.
When you have good credit, not only are you more likely to be accepted for car finance, but you’re likely to receive lower rates.
If your current score could be improved, don’t worry we’ve got you covered!
Easy Ways to Increase Your Credit Score Fast
If you want to improve your credit score quickly, there are some clever tips you can follow. Let’s explore some of the fastest ways to boost your score to secure the car finance you need:
Check Your Credit Score
Your credit report contains all kinds of information about you. However, not all of it may be correct.
Mistakes happen, and they can significantly impact your credit score. So, begin by checking your current score on all three of the major credit agencies (Experian, Equifax, and TransUnion).
If you spot any mistakes, reach out to the agency to have them corrected.
Register to Vote
It is much more difficult to get credit if you are not on the electoral roll. Don't wait for the yearly reminder or the elections; you can apply on the Gov.uk website at any point in time.
You'll be asked a few questions to identify yourself and the local electoral borough you need to register with. Keep your national insurance number handy here as you're going to need it.
Getting on the electoral roll is a quick and easy way for young people with little credit history to get started.
Add Your Rent Payments to Your Credit Score
Renters frequently pay higher monthly payments compared to homeowners, but they still struggle to demonstrate their ability to make the payments on a loan.
If you’re a tenant and not a homeowner, you can use a rent reporting platform to provide a record of your payments. These services include:
- The Rental Exchange, which is free but only for council and social housing tenants
- CreditLadder, which costs £5 a month and reports your payments to all the credit agencies
- Canopy, which also costs £5 a month and reports your payments to all the credit bureaus.
Be Wary of Hard Credit Searches
When you make a credit application, the finance provider will request a hard credit search to assess your creditworthiness.
This, however, will inevitably leave its mark on your credit score, which other lenders will be able to see in the future.
To limit the number of hard credit searches added to your report, look for “pre-approved offers”.
These deals are provided after a soft search has been carried out, which doesn’t leave a footprint on your credit report.
At Carmoola, we carry out a preliminary soft search that won’t harm your credit score. See how it works before you apply.
Don’t Miss a Credit Payment
Though it sounds obvious, it is worth stressing the huge impact that missing credit repayments have on your credit report. One missed payment will affect you for years, especially in the first 12 months.
One easy fix is to make all payments by direct debit so you can never forget to pay.
Lower Your Credit Usage
When you make a credit application, the lender will look at how much of your available existing credit you are utilising.
If you are near your credit limit on your credit cards, for example, it could give the impression you aren’t managing your money well.
Cut Any Past Financial Ties
Ever set up a joint account with your housemates from uni or with your ex-partner? If so, you could be still tied to them financially.
This means that if they have a poor credit history, it will impact their credit score.
If you are no longer connected to them, make sure you request a notice of disassociation from the credit bureau.
Use a Credit Builder Card
Even if you haven’t borrowed any money before, it doesn’t mean you’ll have a good credit score. In fact, it’s quite the opposite.
Not having a credit history means that lenders have no evidence of you successfully repaying your loans.
One solution is to take out a credit card that will help you build your credit history.
However, be aware that the APR for a credit builder card can be high so it’s a good idea to shop around.
The Bottom Line
It can take time to improve your credit score, but there are ways to speed it up. By following the tips that we provided above, you’ll be able to start improving your score immediately.
If you’re looking for affordable and simple car finance, consider applying with Carmoola.
Not only do we carry out a soft search that won’t harm your credit rating, but you can also get your budget before you apply.
Read more about credit scores and car finance:
- What is the Average Credit Score in the UK?
- Do Direct Debits Improve My Credit Score?
- Does Paying Defaults Improve My Credit Score?
FAQs About Improving Your Credit Score Quickly:
How Can I Raise My Credit Score in 30 Days?
Raising your credit score significantly in just 30 days can be challenging. However, you can start by paying down high credit card balances and disputing errors on your credit report. Long-term credit improvement often requires consistent financial habits over time.
How Long Does It Take to Raise a 500 Credit Score?
The time it takes to raise a 500 credit score depends on various factors, including the specific actions you take and the current negative items on your report. Significant improvements may take several months to a few years of responsible financial behaviour.
How Can I Speed Up My Credit Score?
To speed up credit score improvement, focus on paying bills on time, reducing credit card balances, and avoid new credit applications.