3.3 Good tips to help your credit worthiness

Most of the key tips for managing and improving your credit score come down to ‘good financial habits’:

• Make sure you’re not late on any repayments as they can end up on your credit report, as already mentioned – even some rental agreements are registered.
• Don’t apply for lots of accounts in a short time, and try to avoid any applications before something major, such as a mortgage application.
• Consider closing unused credit card accounts and cut up the cards. Even though you’re not using them, the credit limits for these cards might limit your ability to borrow elsewhere. But to complicate things, dispensing with cards you have used responsibly for a long period of time might lower your credit score so they’re often best left open, though it’s not an exact science. To strike a happy medium – if you’ve lots of unused credit, close some cards down, but don’t close them all. And above all, don’t max out your limits.
• Try to manage down your debts, focusing on the most expensive first, as this can help your credit score.
• Avoid payday loans. Not only are they hideously expensive, but the presence of one on your file can be a knock-out blow for other applications.

Also, remember never to lie when making any applications for credit as, if detected, this could come back to haunt you.