Can Renting Improve my CREDIT SCORE?
A credit score represents your suitability to receive credit based on a range of data about your financial habits. It's mainly based on the information you provide on applications, as well as any previous credit agreements you have and any debt problems you may have encountered in the form of county court judgments or bankruptcies. Fortess Homes will give you a short idea if renting can improve your credit score.
Here are few questions that you might think of and we will give you also an explanation and ideas.
Do my rent payments count towards my credit score?
Unfortunately, in most cases, they don't. There has been plenty of criticism from financial commentators and renters themselves of the fact that despite paying rent on time for years - often at a rate equivalent or higher to mortgage repayments - tenants can't build their credit rating with what is likely to be their biggest financial outlay each month.
In the past, there have been various campaigns to try and make it mandatory for rent payments to contribute towards tenants' credit scores.
How can you build your credit score?
You can build the information kept in your credit file over time and you will be assessed by the payments you make. You can build your score by paying bills on time and making sure you have enough funds to pay direct debits when they go through your bank account. You need to remember that a lender will assess your eligibility for credit based on your recent financial behavior.
Building a credit history is about having a credit history. This means you need to be taking steps that can help lenders to build up a picture of your financial situation and subsequently predict your future habits and ultimate suitability for credit. Therefore, you need to be active in making regular payments like utility and phone bills. Meanwhile, having a credit card can also help, but only if you use it responsibly.
Five quick tips to improve your credit score
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Register to vote - if you're not on the electoral roll, it could be very hard for you to get credit.
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Use eligibility calculators instead of applying for products - this can help you to minimize the footprint on your credit file if you're having difficulty applying for credit.
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Spread out your applications for products - too many applications in a short space of time could look frivolous, or even suspicious, to lenders.
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Avoid withdrawing cash on your credit card - lenders see it as evidence of poor financial management and habits.
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Cancel unused cards - if you have lots of unused credit, it can be beneficial to close some of the accounts. However, long-term accounts with good histories can be useful for applications.
What could negatively affect my credit rating?
Most of the factors outlined above will affect your credit score and subsequent eligibility for credit. If you have a poor payment history, have missed payments, and have court records such as CCJs, these could all have a negative impact on your score.
Lenders are also likely to look at your 'credit utilization' - this is an assessment of how much you owe and how much of your available credit you are currently using. If you owe a lot of money and have used up most of your credit, this could be viewed negatively by lenders. When making applications, if your earnings combined with the amount you owe make the affordability of what you’re asking for unattainable, this could also have a negative impact.
If you have questions about your credit score, feel free to ask Fortess Homes. Our estate agents will give you time to discuss any questions you might ask. don't hesitate to get in touch with us! 
