How to Improve Your Credit Score Before Applying for a Contractor Mortgage

How to Improve Your Credit Score Before Applying for a Contractor Mortgage

Blog Article

If you’re a contractor planning to apply for a mortgage, one of the most important things you can do in advance is improve your credit score. A higher score increases your chances of approval and helps you secure better rates.

Here’s how to boost your credit profile before you apply.

1. Check Your Credit Report
Start by reviewing your credit file with agencies like Experian, Equifax, or TransUnion. Look for:

Errors (e.g., incorrect addresses or missed payments)

Outdated accounts

Signs of fraudulent activity

Dispute any inaccuracies—fixing mistakes alone can improve your score.

2. Register on the Electoral Roll
Being on the electoral roll at your current address helps lenders confirm your identity and boosts your credit score. Make sure your details are up to date.

3. Pay All Bills on Time
Lenders want to see you’re financially responsible. Set up direct debits to ensure you don’t miss payments on:

Utility bills

Credit cards

Mobile phone contracts

Even one missed payment can negatively impact your score.

4. Reduce Credit Utilisation
Keep your credit usage below 30% of your available limit. For example, if your credit card limit is £3,000, try not to carry a balance over £900.

This shows lenders you’re managing debt well.

5. Avoid New Credit Applications
Each application leaves a hard search on your report. Applying for credit shortly before a mortgage can hurt your score and signal risk to lenders.

6. Don’t Close Old Accounts
Older credit accounts help establish a long-term credit history. Keep them open and use them occasionally.

Final Thoughts
Your credit score is a major factor in mortgage approval. Taking time to improve it before applying can give you access to better rates and a smoother process overall.

At Contractor Mortgage Solutions, we guide you through the mortgage journey—even before you apply.