This is a sponsored post with Experian.
One of the most common questions asked is, “How can I improve my credit score?”
Credit scores are a really big part of our financial health. They can make a big difference to our lives – influencing, for instance, whether or not we’re able to get a car or a mortgage.
As dull, and even complicated, as it might seem, taking some positive steps to improving your credit score could help you reach your goals in life faster. On the other hand, feeling stressed about your finances can really bring you down.
You might have already found out about ways you could improve your score, and maybe you’re feeling stuck at a certain level. Some things that have a negative impact on credit scores can affect them for quite a while, and it can feel a little hopeless at times.
But it’s not. There are ways that you can take control, and now you could be able to boost your score, for free, instantly.
Experian Boost has launched, and it’s here to see if you to get some lift-off on your score. Let’s take a look.
Why are credit scores important?
A credit score is based on your financial situation now, as well as how you’ve managed your money in the past. All of this information about credit, bank accounts, and many other factors are included in your credit report. The higher your credit score, the better your chances of being accepted for credit, at the best rates.
When you want money to be loaned to you (for a mortgage, for example), the lender look at how likely you are to pay it back to them.
One of the ways they do this, is to look at your information from your credit report. Your credit report will show how you manage your credit accounts, like a credit card or a loan, and other information too – including whether you’re on the electoral roll at your current address, for instance. It’s important to note that lenders won’t have access to the Experian Credit Score itself.
Why should I improve my credit score?
You might be wondering why you should improve your credit score, what difference does it really make anyway?
A study by Experian found that over half (53%) of people have either never looked at their credit score, or look at it very rarely – twice a year or less.
But every year, millions of people in the UK are refused credit because lenders don’t have enough information to show they’d be able to pay back credit – even when they can.
How can I improve my credit score? A look at Experian Boost
Experian Boost is the UK’s first service that could let you instantly improve your credit score simply by connecting your bank account and using information such as regular entertainment and music streaming payments, and council tax payments too.
This kind of information, like payments to services like Netflix, and also deposits into savings accounts, are taken into account by Experian Boost, It’s the first time this kind of data has been considered for credit scores.
Experian Boost is a new, free service, which can give you more control over your credit score, instantly improving your financial health.
When Experian were doing their research, they found that many people would like more guidance on how to manage financial health and understand their credit scores.
The goal of Experian Boost is to help you to feel more confident, and to feel in control of your finances, along with helping you to access the credit that’s right for you.
So far, it seems that over half of people (51%) using Experian Boost get an instant increase to their Experian Credit Score – which equates to about 17 million people reaping the rewards.
Amongst this group, they estimate there will be more than one in 10 people moving up an entire Experian score band.
Looking to improve your credit score? Signing up to Experian Boost is easy – see if you can increase your credit score today.
Must admit this could be useful but also a little worrying that yet another hackable agency has access to your details, spending habits and others. Doesn’t that worry you?
It is surprisingly useful. My credit score dropped from 999 to 500 and for the life of me, I didn’t know why. Signed up and the first thing it showed was that I hadn’t updated my address on the voting register. Updated and am now back at 999! 😀
That’s great news!
One thing I really don’t understand is why closing off old debts takes your score down. I paid off nearly everything during lockdown whilst I didn’t have travel expenses and my score has gotten so bad. It seems unfair that clearing your debt should impact your score negatively.
I agree Dani! You’d think it would be a positive thing!