We can only win the good credit score game if we know the rules and play by them. Unfortunately the rules by which we are judged by banks and credit reference agencies are hidden in the dark.
At the moment many things are changing that are determining your credit rating and not many people have the time and energy to work on their credit rating, but if you know the core tasks of building up and maintaining your good credit score, it can actually be very simple.
Credit reference agencies do check your address links first of all, and they are looking for credit and footprints where you say you are living at. Therefore the first step you have to take is to register to vote immediately once you moved in to the property. Then you will have to move all your credit to the new address, so have to let every company know about the changes, so you will have credit running from the address immediately.
If you haven’t had credit before, as you just moved out on your own and were living with your parents or in student accommodation, you have to make sure you will have at least a mobile contract running from the address.
Make sure that if you do have to change jobs, you try and wait even if it is painful, because they will look at how long has your employment lasted to determine how good your profile for credit would be. If you are not happy with your current role, look for internal vacancies first, and in-house training to get the job you wish to do. Also when you move make sure you will stay at the property for a while, because moving every 3-4 months can really ruin your credit profile.
Set up direct debits for good credit!
If you pay your bills by direct debit you are less likely to miss the payment dates. It is just a question of budgeting, try to shift all your bills to come out of your account after payday, so you will be able to make the repayments on time and maintain a good credit profile. Credit reference agencies get feedback of you by utility companies, mobile companies, car insurance agents and so on. If you are not good at budgeting, ask an elder relative to help you out.
Use your overdraft wisely!
It is almost essential to have an overdraft facility on your account, it will help you keep on top of your monthly budget and also build up a good credit rating. You just have to remember that applying for an overdraft is actually resulting a credit search, and in order to make the overdraft help you build up your credit score you must dip into it and pay it back as well. You cannot just simply forget about it!
Reduce credit searches.
It is said that every application for credit actually knocks back your credit score, so use it wisely. Even a car insurance you are paying monthly or a mobile contract with a free phone can ruin your credit rating for a couple of months. If you do shop around for finance it may take (depending on the amount you apply for) 2-6 months for your credit score to recover after the search, and it will only start improving afterward.