5 ways to spring clean your finances

Are you doing all you can to keep on top of your finances? Here are five things you might not have considered that can help you stay financially healthy this spring. 

1. Get on the electoral register

Are you one of the millions of people in the UK that isn’t on the electoral register? Or maybe you’re on it, but not at your current address. If you're correctly registered, it means that your identity can be verified easily by potential lenders who search your credit file.

To register or update your address, you can do it here. It only takes five minutes!

To check whether you're on the register, you can contact your local council.

2. Work on paying off your debts

Now's a good time to look into any debts you owe and think about how to go about tackling them. The snowball and avalanche methods are tried and true systems which guide you on which debts to focus on first.

For other areas to look into, consider:

• Paying a little extra when you can. Even just £10 more each month toward your credit card will clear your balance faster and save on interest charges.
• Keeping your credit usage low. Try to use only around 30% of your credit limit. Using more might make lenders think you rely too much on borrowing.
• Consider combining multiple debts. You could use a debt consolidation loan or a balance transfer credit card to simplify your payments and potentially get a lower interest rate. Remember that consolidating debt has its own considerations, like balance transfer fees and early repayment charges, so be sure to research your options and see if they fit your needs.

Find out how to get help if you’re struggling with debt.

3. Remove any old financial ties

If you’ve ever had joint financial arrangements with someone else (like an ex-partner), they could still be linked to your credit file, even if the account is settled and closed. If this is the case and the other person has a poor credit history, this could impact your score as well.

To remove any financial ties, you'll first need to make sure the account is closed. You can then write to the credit reference agencies and ask them to remove the association from your file. You'll need to show proof that the account is closed. Contact each credit agency - Experian, Equifax, and TransUnion to let them know.

4. Check your credit report is up to date

Regularly checking your credit report will allow you to identify any discrepancies or errors on your file. It also means that if your score is on the lower side, you can actively work on improving it.

When you check your credit report, make sure your details are correct and up to date. If you notice any mistakes, don't hesitate to get in touch with the credit reference agency. It's good practice to monitor your credit report from each of the credit reference agencies.

You can access your credit reports for free with all three providers (Equifax, Experian and TransUnion). You can also check your Equifax credit report for free with CredAbility.

5. Cancel any unused credit cards

If you’ve got any old credit cards with a zero balance that you no longer use, it could be a good idea to cancel them. This way, you won't be tempted to use them, and it will reduce the chance of fraud. Contact your lender, as just stopping using them won’t close them down.

Bear in mind that you should aim to keep your credit utilisation below or around 30%. If cancelling a card means that your usage would go up, then work on repaying what you owe elsewhere first.

💡 Tip: If the credit card has been well managed in the past, it may actually be contributing to a better credit score, so consider this before closing it down.