Five factors that can hold back your credit score



Whether you’re looking for a competitive credit card, taking out a mortgage, or looking for financing for a major purchase like a car, having a good credit rating is critical.

Not only does it suggest that you are eligible for a card, loan, or finance package, but the higher your score, the more you increase your chances of getting a decent rate.

Ultimately, lenders don’t like to take too much risk, and the higher the score, the more attractive you become as a client.

With queries “how can I improve my credit rating?” has grown more than 20% since May 2020, car loan provider Zuto identified five things that may keep you from getting a good grade.


When we get into a serious relationship, many of us will get bank accounts, mortgages, or other loan products together. In doing so, you gain a financial connection with your partner.

Once this happens, your partner’s credit profile can affect your ability to get loan approval – whether or not you apply together.

If any of you have a low credit rating or a bad credit history, it may be best to take steps to increase your scores before making a financial connection.

Once you get a financial connection, it is important to maintain a good credit rating and not rely on your partner’s rating.

It may be tempting to write all household bills in the name of one partner. However, keeping track of bills and paying them on time with direct debits helps improve your credit score, so it’s important to make sure you keep some sources of credit in your name.

With the relaxation of Covid restrictions at the end of the tunnel, there is a light for weddings. When you get married, you can change your name.

Changing your name can be a lengthy process; make sure you get in touch with everyone who needs to know, such as your bank, doctors and DVLA.

To minimize the impact on your credit score, make sure you update your name on all of your accounts, such as credit cards and utility bills.

You will also want to update the voter list with your new name so that there is a link between your credit and your new name.

Unfortunately, not all relationships work out, so if you do decide to break up, let the credit agencies know that you would like to receive a disconnection notice so that your ex’s financial activities don’t affect your account.

Avoid the maximum

We all know that using a credit card to the max or even approaching it is a bad habit. Responsible and regular use of credit can help improve your credit score by showing that you can get your borrowed money back.

With this in mind, it is important to understand how much you should be spending versus what is available to you.

The use of the loan is the amount of the loan available to you, so it could be overdrafts and credit cards, not how much you used.

It is best not to approach the limit, as this could indicate financial problems.

Different agencies offer different ratios, one of Zuto’s trusted partners, ClearScore, suggests aiming for credit below 30%.

Cancel or keep old credit cards?

This is an important question when considering what affects your credit rating. As a rule, having access to too much credit, even if you are not using it, may be viewed by some lenders as a negative factor.

So, it’s worth considering closing the ones you no longer use or no longer need. It can also reduce the risk of old, unused credit cards being scammed.

However, if you have a credit card for some time and have been well used and managed, it can help keep your credit score healthy, so it is worth considering keeping them. Just make sure all credit cards are registered at your current address.

Cash withdrawal to credit card

It can be tempting to leave £ 10 in your wallet in case of an emergency. However, it is best not to withdraw cash from your credit card.

This is indicated on your credit history and can be a red flag for lenders as it can be viewed in the same way as applying for a loan.

House on wheels

Your address is listed on your credit report, so it indirectly affects your rating. Therefore, it is important that it is correct and up-to-date.

Moving can often be a sign to lenders that your life situation is unstable and can make them wary of lending to you.

Moving also has many financial implications, so keep an eye on your credit report. It may be better to postpone your loan application until you register to vote at the new address, as not participating in an election can increase your chances of being denied credit.

Updating the addresses of all your accounts immediately after you move, even if you manage your account online, can also lower your chances of being scammed.

Also, remember that too many loan applications in a short period of time can lower your score, so be careful when applying for a loan.

Remember to update your address across all credit sources, as address inconsistencies can damage your score.


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