Major high street bank brings in big change for customers – and it can help lower your bills and get a mortgage

A MAJOR high street bank has brought in a big change for customers that can help you lower your bills and get a mortgage. Nationwide Building Society has launched a credit score tool on its website and banking app. It said it’s offering the service for free to help improve financial confidence and education. Your credit score essentially tracks how reliable you appear to be when it comes to repaying money. Sign up for the Money newsletter Thank you! It’s based on how you’ve handled money in the past, and the higher your score the more likely you are to be approved for credit. Your credit score impacts your ability to take out loans, credit cards, phone contracts and mortgages. If you have a higher credit score, you’ll likely be able to get a better deal on your loans and contracts, including your mortgage. If your credit score is poor, you might not be able to borrow enough to get the home you want – or you could be landed with higher monthly mortgage payments. However, only 39% of people who check their credit score say they understand it very well, according to research by the Financial Conduct Authority. A further 9% said they didn’t understand it well or at all. Most read in Money Nationwide customers will be able to see what factors influence their score through the new tool. The building society has said it plans to provide more financial education to customers in the future. Nationwide chief product owner David Gordon said: “We know that for some people, credit scores are notoriously difficult to understand and we want to help with that. “Investing in our digital services and offering customers a way to bank that suits them is a key priority for us. “Our new credit score service has been built to help our customers build financial confidence, improve their financial wellbeing and make more informed decisions about their money.” There are three main credit reference agencies in the UK which collect information about you from public records, lenders and other service providers. A “good” score is generally considered to be anywhere between 881 and 960, while a “fair” or average score will be between 721 and 880. If your credit score isn’t high enough, or you just want to bump it up a little to get better rates, it is possible to build it up over time. How to boost your credit score WE spoke to Experian’s expert John Webb about the steps YOU can take to boost your credit history. It takes time to build up your credit score, so you need to start planning in advance. John recommends giving yourself just over a year to boost your score. This will allow time for any new accounts you open to mature and to start positively impacting your score. Easy bank account mistakes to avoid You may not realise it but opening new bank or credit accounts can lower your credit score temporarily. That’s because you will go through a credit check whenever you apply for a new account – and this impacts your score for a short while. Each new account application and opening can lower your score for up to 12 months. After about six months, the new account will start to have less of an impact on your credit score – as long as you’re regularly making payments on time. Being a loyal banker can pay If you’ve had at least one or two of your bank accounts open for a long time, that will look good to lenders. That’s because it shows a consistent payment history over many years. Log your council tax and Netflix bills You can add extra information about payments you make regularly through Experian’s Boost feature. These can include council tax payments, savings accounts and subscriptions like Netflix and Spotify. You can boost your score by a huge 101 points if you do this. Be aware though that not all lenders will factor this in. Get a credit card – and keep using it Having a credit card and paying it off regularly and on time can help to boost your score. However you should make sure you keep using it. Not using it for a long time could mean it gets marked as “dormant” or the account is closed. Of course, if you miss a credit card payment that will have a negative impact on your score so you should only borrow what you can afford. Reduce your debt If possible, prioritise paying off any debt you have. This can dramatically improve your credit score and potentially mean you get better interest rates on your mortgage. The EASIEST way to boost your score This is perhaps the simplest one to do and will give your score a decent boost. Just make sure you’re registered on the electoral roll at your current address. Lenders like this because when you register to vote, your electoral details are recorded on your report and this helps them confirm your name and address. Comment now