The financial pressure of Christmas can push people into taking on credit to help them spread the cost of giving over the festive season. It’s important to carefully consider the future impact of taking out a loan, store credit or opting for a Buy Now Pay Later plan, making sure it’s affordable and not something that’s going to cause money worries later on. However, if you do decide to borrow money - even if it’s just for a short-term loan - it’s important to understand how your credit worthiness can impact decisions made by potential lenders.
It’s important to recognise that there is no actual ‘credit score’ as different lenders will use different tools to measure your credit worthiness when it comes to borrowing money - no matter how big or small the amount. A higher level of worthiness is a positive sign to lenders, so it is worth taking steps to avoid bad habits that could be detrimental to your financial standing. Capital One UK has shared some of the ‘simple’ ways that may help improve your chances of boosting your credit score.
Even if you don’t vote, it’s important for your credit score to ensure you register on the electoral roll at your current address, even if it’s shared accommodation or living at home. Aim to pay your balance on time and in full, including anything you have on Buy Now Pay Later. This shows lenders you’re reliable and capable of handling credit.
A good way to make sure you pay on time is to schedule payments towards you.