5 Top Tips To Boost Your Credit Score*

Your credit score is important. It can determine whether you are about to get a mortgage, a brand-new phone plan and the interest rates you’ll pay on loans.

What is a credit score?
A credit score is a 3-digit number that shows how likely you are to be accepted for credit, the higher the score the more likely you are to be accepted for a credit application

A higher score means lenders see you as lower risk. So, a good score will be good news if you're hoping to get a new credit card, apply for a loan,

Check your credit report
Your credit report contains all the information which makes up your credit score, you can check your score online for free using sites such a Credit Karma and Clearscore. It is important that you take your time to look through it and make sure everything is correct. Mistakes can have a significant impact on your credit score,

Register to vote
Having your current address on your credit report is very important. When you move home, make sure you register to vote at your new address as soon as possible.

Councils send voter data to credit reference agencies once a month, so this can improve your score within eight weeks.

Get credit
Another way to boost your credit score is to get credit. This can be done in a few ways. By either getting yourself a credit card which also acts as a reward card that are ideal for people with a poor credit score. You can also consider getting a short-term loan as another way to improve your credit rating. When you opt for borrowing money, the company will check your credit score and carry out some affordability checks, so being aware of this in advance gives you a head start as it is temporary, makes your score lower. Try not to apply for more than one new credit every 6 months, as this will also affect your score.

Pay your bills on time
There’s no quicker way to hurt your credit score than missing payments, which is why you should always make sure to pay your bills on time. Setting up direct debit can be immensely helpful when you get a payday loan, it helps you demonstrate that you are a reliable borrower. While it’s ideal to pay your balance in full if you’re able, so that you can avoid accruing interest, paying the minimum will still show up as a completed payment on your credit report. It is essential that you compare the many payday loans options out there and make sure you look for short term loans that tell you everything involved in borrowing from them before you commit to lending, so you can be sure that you’re making the best financial decision for you and your personal circumstances.

If you are finding it hard to pay your bills on time, if you find you are struggling often financially, please contact Step Change. Step Change is a debt charity which gives free debt advice & debt management. Step Change is fantastic, they will deal with contacting your lenders, so you don't have to, they are happy to give you advice when you need it.

Keep your balance low
Your credit utilization rate, the amount of available credit you use at any given time, is one of the most important factors in determining your credit scores. Keep your credit usage to no more than 25%. Keep your balance low, as this can lower your credit score and also limit the amount of credit cards with a low APR available to you.

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