Martin Lewis offers advice on credit scores
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Having a healthy credit score is vital to help future lending prospects, as people with higher scores are more likely to receive credit. That is why it is important to know how to improve your credit score, and what to avoid so as not to damage it.
To help, the team at Moneybarn have shared their top tips for improving your credit score.
“Make sure to pay off your credit in full at the end of each month,” they said.
“By doing this, you are proving to any potential lenders that you are taking responsibility.
“Building a strong solid credit history can be done by paying your bills on time at the end of each month.
It is important to have a healthy credit score. (Image: GETTY)
“This shows the lender that you have got enough cash flow to cover your expenses. Paying late will result in damage to credit history and a lower credit score.
“Request to see your credit report. If you know what information is being reported, you are able to build a positive credit history.
“If there are any mistakes in your report, this could damage your credit score.
“Once you’ve got your first credit card and you’ve had it for six months to a year, call the credit card company and ask them to increase the limit of your credit.
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“You want to raise the credit limit on your card and not the amount of debt you owe.
“What this does is help you carry a balance which will then raise your limit, helping you keep your debt-to-credit ratio down.
“Your credit history will be critical when it is time to spend money on cars or homes.
“This then means that a one percent difference in interest on a loan could either cost you or save you a lot of money.”
Leading 0 percent credit card offerings. (Image: Express)
A new study by Moneybarn has also revealed the regions and areas with the best and worst credit scores in the UK.
Residents of the South East of England have the best credit score, at an average of 810, almost 100 more than the region with the lowest score, the North East, which had an average score of 733.
The South West region also performed well, coming in second place with an average score of 801, London came in third with 801.
Wales were only one spot better in the rankings, with an average credit score of 744. This was lower than the average scores of 781 and 786 in Scotland and Northern Ireland respectively.
All Northern regions fell in the final four places, with the North West region performing poorly, as well as Yorkshire & the Humber.
These tips can help maintain a healthy credit score. (Image: GETTY)
At a local authority level, Kingston Upon Hull had the worst score, just 679, whilst City of London had the best with 877.
The South East region had six local authorities in the top ten, with Wokingham leading the way after a score of 864.
Contributing to their poor performance in the regional rankings, Wales had four local authorities in the bottom ten, with Blaenau Gwent having the lowest average score in the country at 681.
Middlesbrough had the lowest average score in the North East, the lowest scoring region, with 699.
The third worst local authority was the North West town of Blackpool, picking up an average score of just 693.