Tips and Experian App
Your trustworthiness as an individual based on your financial status is established by your own personal credit score. In other words, your ability to take out a loan of any sort is determined by how reliable you are. Without a solid credit score you can fail in taking out a mortgage, bank loan, concluding electricity and gas subscriptions, property rentals and even getting a contract phone. Establishments have different criteria and your credit score may vary from one to another but in essence maintaining a close-to excellent credit score is a rule of thumb!
How is a credit score calculated?
A credit score is formed of many criteria however without a doubt, the most important one is your payment history. If you have established a solid background of taking out debt and full payment in due time, then most likely your credit score will be sufficient for most of the transactions you hope to carry out. Seeing as you require a credit check to take out a debt/loan, it should not be a surprise that the second most important criteria is your current debt or loan. Financially we are capable of taking out loans to the extent that our income covers it on a monthly or yearly basis depending on the payment structure. The higher liability you have, the less likely you are to take out further loan within the limits of your income. Your credit history and credit mix are some of the other factors that are taken into account in credit score calculations. What if you just moved to England and do not have a credit history?
How to establish and/or increase your credit score?
Moving to England as a foreigner means starting from scratch in certain ways. In most case you need a new drivers' license, register with the police and of course start a credit history.
Thankfully, starting a credit history is one of the easiest tasks you will take on after a move and if all goes well, you should have a solid credit history within a year. However, if you already have a low credit score, it may take a few months or even a few years to increase your credit score depending on your financial history.
Here are some tips to establish and increase your score; open a bank account, take out a credit card and pay in full each month, do not use all your credit, do not take out multiple loans, use direct debit for all household payments such as gas, electricity, water and council tax, internet, Netflix, Spotify and even your gym membership,
How can you see your current credit score?
There are two types of credit checks. A soft credit check is carried out by companies which look at certain parts of your credit report without adversely affecting your score, a hard check on the other hand allows a company access to your entire report. Carrying out multiple hard checks within a short period of time may adversely affect your credit score for a term of six months.
If you want to carry out a soft check on yourself, you can benefit from certain apps one of which is my recommendation and best friend. Experian connects to your bank accounts and maintains a current score of your credit that is accessible anytime through the app. With many useful tips and direction, you can establish and increase your credit score to your need. Just sign up and let the app do the work for you.
I know that it's very annoying to be rejected for a contract phone application when it's Apple launch time or wait until your score is sufficient to buy the house of your dreams. However, with the right guidance and patience you can have your house and go online in it too!
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