Your credit score is something that you will have for life and it will fluctuate over the years. However, it is important to try and maintain it, as a bad credit score can possibly prevent your from securing financial products in the future, such as credit cards, mortgages, or loans. If you would like to boost your credit score, here are a few tips on how to get started:
1. Check Out Your Credit File
You are entitled by law to access one free credit report every 12 months or within 90 days of receiving a credit rejection. Get a copy of your credit from illion, Equifax, or Experian, and see if there are any areas that you can improve on.
2. Apply For A Credit Card
While it may seem odd, having no debt at all does not make you more creditworthy. Using a credit card in a measured and responsible way is evidence of an ability to manage debt effectively, so it is worth applying for one. If you are not good at managing a credit card, cut the credit limit back and only use it for purchases that you know you can afford to repay.
3. Consider A Bad Credit Loan
Like credit cards, if you can prove that you are able to comfortably repay a loan, you will see a boost in your credit score. Bad credit loans are based on affordability, rather than your whole credit score, so if you have poor or no credit, you may be able to apply. Make sure that you repay on time each month and you can improve your credit score.
4. Do Not Submit Too Many Credit Applications
Each credit application that you make will be added to your credit file. If you submit too many applications in a short period of time, this will lower your credit score. You should do your research before applying for any credit and ensure that you leave enough time between each application to avoid damaging your credit file.
5. Do Not Move House Or Change Jobs Frequently
Lenders want evidence of stability and consistency, so you should try to reduce the amount of times you move house or change jobs. They want to know that you hold some permanence, so by staying in one place and in a consistent role, you can boost your credit score significantly.
6. Pay Your Bills On Time
While your credit file does not include information about your payment of utility bills, such as water, gas or electricity, or your phone bills, it is important to pay these on time. If you do not pay your bills when they are due, your credit provider may refer your debt to a debt collector or report your debt to a credit reporting agency, asking them to record the default on your credit report.
These are just a few ways that you can help to improve your credit score, but our main tip would be to keep a close watch on your file and act on any areas that you know you can improve on. If you need any advice, please contact the relevant financial advice bodies.
