Have you ever wondered what makes up and affects your credit score?

A large number of things can have a significant impact on your credit score. First of all, the result of a credit check will be determined by having high levels of debt. There are plenty of other factors, such as not being registered on the electoral roll at your current address. Missing bill payments is another one – these remain on file for six years.

‘Financial association’ is another important factor. This means that if you share assets, accounts or credit (a mortgages, for example) with someone who has a poor financial record, your credit score might be affected.

Other things that could affect your credit score negatively include moving home often and not having a landline number. The reason behind this? Certain lenders might consider these factors to be symptomatic of an unstable living situation.

If you have a low credit score, there is a variety of steps you can take to try and improve it. These include paying all your bills on time and getting registered on your electoral roll. Among other things, you should also meet monthly minimum payments on credit cards.

To find out more about how lenders and utility companies usually calculate credit ratings, scroll down for a look at a handy visual guide to credit scores from Sainsbury’s Bank.

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