How to Build Your Credit Rating

The Resolution Foundation has recently released a report that indicates that one in three millenials will have lived their lives and entered retirement having never owned a home.

In addition, due to the fact that many millenials either don't have or have a poor credit rating, their chances of owning a home are reduced even further.

What is a credit rating?

A credit rating is a score that measures your perceived reliability when paying back debts. Equifax and Experian are two companies that build your score based on your previous financial history.

How reliable you have been in the past will form a large part of the likelihood a provider will offer your a loan. This however can be difficult if you do not have a significant previous history.

A credit card is one way of building your financial history, however, many may prefer not to have a credit card due to the temptation to rack up debt.

Pay your rent on time and build a score

Rental payments, a significant monthly cost for many millennials, do not currently help to build a credit score. One solution is apps such as Canopy, which help to build up a credit score by keeping a record of your payments that feeds in to your credit record with Experian.

Get your name on utility bills

Those who live in houseshares could spend a significant amount on utilities without a record of them ever having done so. It's important therefore to have your name added to bills wherever possible.

Register to vote

Your reliability in the eyes of lenders can be improved by simply registering to vote, and the longer you have lived at one address, the better. It's free to register to vote online.

Contact Westminster Wealth Management today and one of our skilled advisers can construct a financial plan for you that will enable you to meet your financial goals.

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