How to keep a good credit score

Applying for vehicle finance for your next car lease?

Maintain your healthy credit score and improve your chances of being accepted for the best finance deals available. 

In order to be accepted for vehicle finance, a loan or a mortgage on a house, you need to have a good credit score. With a higher credit score, lenders will see you as a lower risk as you have a history of managing debt responsibly. 

You’re also more likely to be accepted for higher credit limits and more competitive interest rates. 

Achieving a good credit score won’t happen overnight, but things like registering on the electoral roll, making regular payments on time and checking for errors on your report can make such a difference to your credit score. 

Once you’ve got a good credit score, it’s important that you know how to maintain it. 

Interested in using a credit reference agency? 

Signing up with a credit reference agency will ensure that you have effective management of your credit report which could save you money over time and ensure that you are not refused credit when you need it. 

With Credit Score Pro, you’ll have the ability to understand, monitor, and check your credit report and score. In fact, they offer a live report update daily which is a fantastic feature. 

If you spot a mistake on your credit report, you’ll be supported when you want to make a dispute. You’ll also be protected from fraud and your chances of getting credit in the future will be improved. 

You can have all that for a monthly discounted cost of £19.95 if you go through Carparison. These are big savings than if you were to go directly to Credit Score Pro for £35.95 a month. If you’re not quite ready to commit and would like a taster, we also offer a 14-day free trial for our customers.

How do you maintain a good credit score?

Pay all your bills on time

Payment history is a big part of your credit score- lenders want to know that you’re responsible with your money and can be trusted. Any missed or late payments can cause a dip in your credit score.

Whether it’s your phone bill or your credit card, the ultimate rule for repaying debt is to do it on time. In terms of your credit card bill, it would be best to pay your fee in full, but even if you can only pay the minimum balance, make sure you meet your due date.

If you aren’t good at keeping track of due dates, don’t worry! You can set up reminders and automatic payments with your bank to stay on top of your bills.

Keep your credit card balance low

Experts recommend that you keep your combined credit card balance below 25% of your credit limit. The higher and closer your credit balance is to your credit limit, the worse your credit score will be.

Lenders will make the assumption that you’re struggling financially if you’re close to maxing out your cards every month. Therefore, you need to limit your spending and ensure you don’t go near your limit.

Watch out for errors on your credit report

Mistakes on your credit report could lead to a drop in your credit score.

For example, an incorrect address or a hard search for credit that you don’t recognise will affect your score. Identity theft and credit card fraud can also lead to inaccurate information.

So it’s important you act fast and report any credit mistakes you spot quickly.

Don’t close your old credit cards

One of the benefits of having multiple credit cards is that you’ll show lenders you can successfully manage several credit accounts.

Cancelling a credit card may impact your score.

Why is this? Your overall credit utilisation will increase which won’t look good. Keeping long-held credit accounts will look better to a lender as it shows you’re a reliable borrower.

Can you lease a car with bad credit?

You can still lease a car with a bad credit rating. In order to lease a car, a strong credit rating can improve your chances of your finance application being accepted. If you have a lower credit score, the lease provider may see you as more of a risk. However, this doesn't mean it isn't possible.