How to improve your credit score
There are many people out there who are suffering financially due to their poor credit scores and damaged credit histories. In the current difficult financial climate the importance of our credit reports and scores has increased considerably and these days having a poor credit score can leave you out in the cold when it comes to any form of traditional finance.
In order to re-open financial doors you need to make sure that you work on improving your credit score, as the better your score the less of a risk you will be viewed as by potential lenders. Of course, improving your credit score is not something that you will be able to do overnight and it can be a hard and lengthy process – but for those that have any plans to borrow in the future, rent or buy a home, or even take out a cell phone contract, it is something that is well worth the effort.
Some tips that can help you to improve your credit score include:
- Be mindful about your bill and debt payment dates. Paying bills and debt repayments late on a regular basis can take its toll on your credit score so you should make sure that you pay your bills and debts on time, even if you have made late payments in the past. You can consider setting up direct payments from your bank so that your payment is taken out automatically if you are worried about forgetting, as this can save you time. Making sure that bills and debt repayments are made on time and for the correct amounts will help you to avoid unnecessary charges as well as helping you to improve your credit score
- Keep an eye on your credit file. Whilst a lot of the information that can adversely affect your credit is down to the way that you have managed your finances there may be information on your credit report that is not down to you but is still dragging your credit score down. Making sure that you review your credit report on a regular basis means that you can pick up on problems such as incorrect information or even attempted fraud that may have impacted on your credit score
- Look at reducing your credit card balances: The amount that you owe on your credit cards compared to the amount of credit that you have can impact your credit score, so if you are able to reduce your credit card balance and show that you have a lot of unused credit you could improve your credit