For those who are looking for ways to boost their credit profile, the forthcoming general election could offer the perfect opportunity.
According to analysis by MoneySuperMarket registering to vote can add on average 41 points to your credit score.
But first-time voters who want to improve their credentials with this quick hack will need to act fast as the deadline for registering to vote is next Tuesday (18 June).
Registering on the electoral roll, which in turns means you are registered to vote, has, an immediate positive effect on your credit score.
Although it is generally a one-time benefit for those registering for the first time, it can make a huge impact.
MoneySuperMarket explained being on the electoral register gives lenders more confidence you are who you say you are and that the details you provided are correct.
The comparison site found, using House of Commons Library, the number of people registered to vote in each parliamentary constituency. In December 2022, there were over 5.1 million UK adults not registered to vote.
And it found the constituency with the most unregistered voters was Liverpool Riverside in the North West where 1,455,951 had the potential to add more points to their credit score simply by putting themselves onto the electoral roll.
Register – even if you don’t plan to cast your vote
Kara Gammell, personal finance expert at MoneySuperMarket, said: “Improving your credit score usually requires you to demonstrate that you can responsibly manage credit over an extended period of time, so the one-off bonus received by registering to vote is a rare opportunity to instantly boost your score.
“While the prospect of a general election and the opportunity to have a say on who gets to run the country for the next five years will spur some people into voting for the very first time, those who are still undecided or have no plans of voting at all should still consider signing the electoral roll if they want to improve their credit score.”
“It only takes a few minutes to do and could improve your chances of being accepted for a credit card, loan or mortgage, or get access to better interest rates.”
Other ways to improve your credit score
Adding your name to the electoral register is not the only way you can boost your credit score.
Gammell advised keeping a close eye on your payments by staying on top of your credit card, mortgage and loan repayments. She suggests setting up a direct debit where possible to avoid missing payment dates as this can lead to penalty fees and damage to your credit score.
Also, she said, use credit with care. “Aim to keep your credit card spending well within your available credit limit and try to avoid having too many card accounts,” Gammell added.
“Lenders may think you’re too reliant on credit if you’re borrowing up to your limit every month.
“Check the interest rates on your cards and loans – switch where possible to get a better deal and a lower rate, including 0% interest deals, which could help you to pay off debt faster.”
Gammell suggested downloading MoneySuperMarket’s Credit Monitor which will help you keep track of your credit score. You can check your credit score as many times as you like without affecting your rating. It also offers personalised tips on how to improve your score.
