In a market, where lending criteria remain tight and credit is harder to come by, it is more important than ever that consumers become financially savvy, keeping their finances in order and looking after their credit rating. Spicerhaart Financial Services reveals how potential borrowers can make themselves attractive to lenders.

Some credit is better than none. Ironically, it is important to build up your credit rating by borrowing money, usually on a credit card or store card. If you have never borrowed and shown that you can be relied upon to pay the loan back, you won’t have a credit rating at all.

Don’t chase credit. Just as you can have too little credit, you can also have too much. If you do take out a large number of credit cards, store cards or other loans, it gives the impression that you are in desperate need of additional finances and will put lenders off offering you a mortgage.

Register with the electoral roll. Make sure that you register to be on the electoral roll for every address that you live at. This helps to confirm your identity and address history as well as potentially improving any credit score system a lender may apply.

Avoid moving around. You will be more favoured by lenders if you have stayed at one address for several years at a time, rather than moving more regularly, which is risky for lenders who need to be certain of their ability to trace you.

Pay off your debts. Ideally, you should be aiming to pay off the entire amount spent on your cards as soon as the bill comes in. Do not default on any payments.

Show you can save. Evidence that you have set aside money for savings, or have a high level of savings, will make you a more attractive borrower.

Plan ahead. Note the date when your mortgage deal is due to end and start assessing your options in good time. Seek independent mortgage advice from a broker to ascertain which deals will be best for your needs and act quickly to secure those funds.

Sort out your finances. Review all your finances and see if there is a way to consolidate debts to make managing them easier, reduce your interest payments or cut down your general outgoings.

Steve Cox, operations director of Spicerhaart Financial Services, said: "It is essential that borrowers remain on top of their finances and look after their credit ratings as best they can. Lenders need to feel certain that they are not taking a risk when agreeing to a mortgage or loan.

"Borrowers should also be ensuring that they plan well ahead of when their current mortgage deal is due to end, searching across the market for the best rates with the help of impartial broker advice."