| Financial Guidance

Your free ticket to a cheaper future

With ClearScore celebrating its first birthday last week, we wanted to take a brief moment to run through a quick credit score guide and explain why you should jump on the band wagon and get free access to your credit score.

How does my credit score impact me?

In today’s market place, access to affordable credit can have a significant impact on your cost of living. Whether its buying your own home, financing a car, insuring that car, improving your day-to-day cash flow, or even accessing better monthly mobile phone contracts, your credit score may be the ultimate deciding factor when it comes to how much you have to pay. 

What is a credit score anyway?

Providers of mortgages, mobile phone contracts, overdrafts and such like, use credit scores to understand how risky you are as a borrower. Put simply, it’s a score that attempts to predict your future behaviour, based on your behaviour to-date. If you pay your rent on time, stay within your agreed overdraft limit, pay your utility bills on time, etc., then you will be seen as a low risk customer and so you’ll be able to get a better rate, and borrowing will cost you less. At the other end of the scale, if you regularly miss payment deadlines, then you’ll be seen as a high risk customer and you’ll have to pay a higher rate that will cost you more. Sometimes a bad score might stop you being able to borrow all together.

What if my credit score is bad?

If the latter description best describes you, it’s not something you have to live with forever. Credit scores change over time, and there are steps you can take to improve your score to help access the better deals.

To do this, it’s helpful to have access to your current score and guidance on what kind of things you can do to boost your score over time. This is what credit score services like ClearScore offer you, and increasingly, it’s absolutely free!

Here’s some more specific tips from our CEO on what you can do to boost your credit score.

Free access to your credit score...

Until recently, accessing your credit score would come at the cost of a monthly subscription, often after a short “free trial” period. After this free trial, many retained this subscription at a monthly charge of around £10-£20. 

Now customers can access their credit report without it costing them anything and, ClearScore aren’t the only folks providing this kind of service. Since its introduction a year ago, Noddle have launched a service along the same premise, and Experian are set to launch something similar very soon (not yet available).

We think this is a really important and positive change for customers. Greater access to your own credit score, can help you plan for the future you want. If you haven’t yet jumped on the band wagon, do! It’s a great way of getting control over your own finances and can help you plan for a better financial position in the near future, helping to get you good deals on those all-important purchases. 

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