7 Things That May Be Affecting Your Credit Score

Credit score may sound like a complex financial term that does not apply to our daily lives, but that is not true. It is an important tool that lenders use to assess your creditworthiness when you apply for loans, mortgages, and credit cards. Understanding your credit score is vital as it can significantly impact the financial decisions you make and the opportunities available to you.

Huge credit footprint

Every time you apply for credit, such as a loan, credit card, car insurance or mobile phone, – your credit footprint gets bigger. Too many applications in a short space of time can lead to rejections. It’s better to spread these applications out over the year.

Missing a payment.

Missed or late payments can affect your credit score. This applies to your credit card, your gas or electricity bill, your car payment or your personal loan. Make sure you keep an eye on these payments.

Maxing out your credit cards

If you are spending like there’s no tomorrow but don’t have the money to do so, you may want to reconsider. Banks may be reluctant to lend you money if you max out your credit card – so think before you spend.


An unpaid bill can lead to a county court judgement (CCJ), called a ‘decree’ in Scotland. This can have a serious impact on your credit file and can remain on your credit file for six years.

Unused credit cards

Credit cards that haven’t been used for a while ca have a negative impact on your credit score. So if you have no reason to use them again, have them cancelled.

Missing from the electoral roll

If you have recently moved house, it’s vital to make sure you have updated your new address with all the relevant authorities. If your name is not on the electoral roll, your lender may have difficulty verifying your identity.

Your partner’s credit.

If you have a joint credit account with someone who has a poor credit history, known as a “financial partnership’,” this may affect your ability to get a loan. Consider whether a joint account is necessary.

Finding out your credit score is easy with websites like Experian and ClearScore. A higher score can improve your chances of being approved for a mortgage.

If you are looking for a mortgage, Lifetime Planning can help. We specialize in securing mortgages for people across the UK. Our mortgage advisers are experts and understand the challenges you may face during the mortgage process.

For more information, feel free to speak to our expert contractor mortgage advisers on our freephone number 0800 211 8700 or fill in our online enquiry form.

Please note, if you fail to keep up with your mortgage payments, your property may be repossessed.

The information contained within was correct at the time of publication.

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