An individual’s credit score is essentially the main determiner when it comes to whether or not he will get a loan or a line of credit. Most traditional lenders such as banks look at their potential clients’ credit report files, identifying markers that give them information regarding how a particular individual handles his income, what are his debt repayment habits, how his relationship with other lenders has been in the past, and whether or not he has any outstanding debt or not.

Most of the information contained within an individual’s credit report file goes into calculating his credit score, which is then used by lenders to calculate interest rates, loan value limits and general terms and conditions. This makes it important to understand what habits can help you build up your credit score.

  1. Register Your Name on the Electoral Roll

Registering your name on the electoral roll will not actively improve your credit score. However, it will make it easier for lenders to verify your identity. This will, in turn, increase your chances of having your loan applications accepted and will also speed up the evaluation process.

  • Pay off and Close All Unused Credit and Store Cards

A large number of lenders look at how much credit their applicants currently have, as well as how large is their outstanding debt. Having a large number of unused credit or store cards can signal banks and other lenders that an individual is unable to handle his personal finances.

This having been said, simply destroying the physical cards will do nothing as the credit accounts that are attached to them will still be active. You will have to get in touch with the providers and ask to close the accounts.

  • Do Not Be Late with Your Installments and Repayments

Repayment habits are extremely important to lenders. This means that they will look at whether or not the borrower has repaid his past loans on time. Those who have are consistently late with their monthly repayments are considered unsafe by lenders, which means that they will look for ways to minimise the chances that they will lose their money. Some lenders ask for collateral, while others set lower limits when it comes to how much money borrowers get.

  • Get a Credit Card to Build up Your Financial History

When lenders receive a loan application, they look at the borrower’s financial history. This includes past loans or debt. If there is no history to analyse, there is a big chance that the lenders will prefer to be cautious and offer large interest rates or terms and conditions that demand collateral.

Getting a credit card and using it once or twice per month, to pay for small purchases will help borrowers build up their financial history. This is because each purchase using the credit card will be marked, as will the repayments of the debt.

  • Use a Prepaid Credit Builder Card

Prepaid cards are great tools when it comes to building up your credit score. These are available throughout the UK and usually, come with a monthly fee of £5 that must be paid for a whole year. Financially, this fee is considered repayment for a small loan. Once the year is up, and the loan is repaid, the lender will mark the debt repayment on your permanent financial record. This may not seem like much. However, it is a great way to improve your credit score without having to spend much money. Lenders consider the number of repaid loans just as important as the amount of money that was borrowed through them.


After I graduated from University with a liberal arts degree, I’ve discovered that I knew nothing of how one should interact with banks. How to read the terms and conditions that I was offered when requesting a loan, or how to create a functional monthly budget that would help me save money. Since then, I’ve applied for dozens of loans and have tested many methods that specialists claimed would help me increase my credit rating and get lower interest rates from lenders. Some worked, and some didn't however, the financial experience that I've gained has helped me get a fresh perspective on how one should interact with banks. I want to share my success stories, methods, and tips with everyone interested so that others will not have to go through the difficult experiences that I did.

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