Reclaim Control Over Your Credit
Your credit file doesn’t just affect loans and mortgages – it can impact your phone contract, insurance premiums and even your ability to rent a home. A poor credit score can feel overwhelming, but the good news is that no matter where you’re starting from, there are practical steps you can take to address your credit file and rebuild your financial confidence.
At Northern Community Bank, we understand that credit is an essential part of everyday life, helping with budgeting, planning for big purchases and managing cash flow. We also know that everyone’s financial journey is different.
That’s why we’ve put together these helpful tips to guide you in understanding, improving and taking control of your credit file.
Simple Steps to Strengthen Your Credit File
Check Your Report for Mistakes
Review your credit report regularly, it’s free to access and helps you spot errors early. Make sure you use a “soft check” so it doesn’t impact your score.
Make Payments On Time
Timely payments are one of the most important factors in maintaining a healthy credit score. If you’re struggling, speak to us, we may be able to help.
Act Quickly on Missed Payments
If you’re more than a month behind, your account may be classed as delinquent. The sooner you can make a payment or set up a plan, the better.
Dispute Inaccuracies
If something on your file doesn’t look right, like a wrongly listed late payment, raise a dispute. Correcting it could positively affect your score.
Limit New Credit Applications
Each hard credit check (like when applying for a loan or card) can lower your score slightly. Too many in a short period can raise red flags for lenders.
Lower Your Credit Utilisation
Try to keep your usage below 30% of your total credit limit. For example, if your card limit is £1,000, aim to keep the balance below £300.
Keep Old Accounts Open
Old accounts help build your credit history. Keeping them open, even with a £0 balance, can benefit your overall score.
Register to Vote
Registering on the electoral roll is an easy way to confirm your address to lenders and boost your score. Frequent address changes can have the opposite effect.
Did You Know?
Northern Community Bank reports to credit agencies monthly. That means every on-time loan repayment you make helps build your credit score. As a not-for-profit community lender, we’re committed to helping account holders manage their money wisely and build a brighter financial future.
