How to improve your credit score

Santander mortgages are generally reluctant to lend to people with a poor credit rating. This makes ensuring your credit score doesn’t go into the negative an essential step in getting a Santander mortgage. Just what affects your credit score though? Here are some of the key reasons:

• Make payments on time – if you miss a payment, or continuously make late ones, your credit score will be subsequently marked down. What you should do is always strive to make payments on time, because this will show Santander that you are a good candidate for a mortgage.
• Keep your balance low – if you currently own several credit cards with high balances on each, Santander may view you as a higher-risk individual. This is because they see you as having a greater chance of defaulting on your mortgage payments. To avoid this, try to manage your debts responsibly and don’t take out large amounts of credit unless absolutely necessary. Basically, keep your balance low in relation to your credit limit.
• Combine types of credit – rather than accumulating multiple credit cards, each with a different type of credit, it’s often better to mix the types of credit across one or two cards only. For mortgage lenders, this is a sign of a healthier credit situation and your overall credit score will reflect this.

Remember your credit history as well! Your credit history isn’t purely a measure of your time accessing credit, it is also an overview of your payment trends. This includes how many times you’ve missed payments, or how often you’ve applied for credit, things that can all affect your credit score. Make sure you stick to the tips above and your credit history will start to be a reflection of a healthier credit score. To check your credit score, websites such as Experian allow you to check it for free.