The money expert says doing just one thing can significantly boost your credit score

A healthy credit score can be very helpful in a number of areas. They don’t make a difference if you get approved for a loan or mortgage, but they can also determine the amount of interest you’ll pay.

And they are often used by insurance companies when underwriting policies, as well as by prospective landlords and their agents when it comes to screening tenants. So having a good assessment can be important in a wide range of decisions that affect your life.

A good credit score is 700 points or more, while 800 or more makes it excellent. But anyone between 300-499 is considered very poor and 500-600 poor.

But there’s one thing you can do that can add 41 points to your score — and move you between lanes quickly. Because registering to vote is not only a legal requirement, but it significantly boosts your credit score, according to MoneysuperMarket.

With the upcoming election in July, it’s the perfect time to check if you’re on the register. But time is running out as you only have until Tuesday 18 June to sign up.

According to data from MoneySuperMarket’s credit monitoring tool, the average credit score for people on the electoral roll is 41 points higher than the average score for those who are not. Getting on the electoral roll (registering to vote) is quick and easy and can have an immediate positive effect on your credit score.

The money expert says this boost is generally a one-time benefit and usually happens when you register to vote for the first time. Being on the electoral register gives lenders more confidence that you are who you say you are and that the details you have provided are correct.

MoneySuperMarket personal finance expert Kara Gammell said: “Improving your credit score usually involves demonstrating that you can manage your credit responsibly over a long period of time, so the one-time bonus you get by registering to vote is an opportunity rare to stimulate instantly. your score. While the prospect of a general election and the opportunity to have a say in who will lead the country for the next five years will prompt some people to vote for the first time, those who are still undecided or do not intend to vote at all should consider signing the electoral roll if they want to improve their credit score.

“It only takes a few minutes and can improve your chances of being accepted for a credit card, loan or mortgage, or getting access to better interest rates.”

MoneySuperMarket tips to improve your credit score

There are several ways to improve your credit score. Here are MoneySuperMarket’s top five tips:

1. Download Credit Monitor – the best way to stay on top of your credit score is to track its progress. MoneySuperMarket’s credit monitor allows you to check your credit score as often as you like without affecting your rating. It also provides personalized advice on how to improve your score.
2. Enter the electoral register – being registered to vote can improve your credit rating. It’s quick and easy to register via the gov.uk website.
3. Track your payments – try to keep track of your credit card, mortgage and loan repayments by setting up a direct debit where possible to avoid missing payment dates – which can lead to penalty fees and damage to your credit score .
4. Use credit carefully – aim to keep your credit card spending within your available credit limit and try to avoid having too many card accounts. Lenders may think you’re too credit reliant if you’re borrowing up to your limit each month. Check the interest rates on your cards and loans – switch where possible to get a better deal and a lower rate, including 0% interest offers that can help you pay off your debt faster.
5. Get a credit builder card – if you have had debt problems in the past and have a low credit score, you may still be eligible for a credit builder credit card. Although you may be offered a low credit limit and interest rates will be relatively high to begin with, this can help you improve your credit rating and improve your access to better credit offers.