Your credit score has an impact on your life in more ways than ever before. Did you know that employers will often request a credit check prior to offering a job? Or a credit check is often required to rent a property? Your credit score has an impact far beyond your basic financial needs, so ensuring it’s in good shape should be a priority.
However, there’s no doubt that intending to fix your credit score is easier said than done. It can be complicated and take longer than you expect, but it is possible. Keep in mind these five points, and your credit score will be climbing in no time.
1) Check Your Credit File For Errors
In an ideal world, all of our financial history would be kept in perfect condition without any risk of errors — but this is the real world. There might be errors on your credit file that are damaging your overall score, such as debts that have been repaid still being listed as outstanding. Go through your entire credit report and history to ensure all information held about you is correct.
2) Use Credit To Improve Credit
Oddly enough, you have to use credit to improve it. Lenders want to see that you are responsible and can be trusted to pay bills on time. There are various methods for this, such as credit-building credit cards. However, these cards tend to have high interest rates, so look for another way of proving your financial trustworthiness. For example, of the best ways of establishing this history is with a smartphone contract; so long as you pay your bill, you’ll be able to enjoy mobile access to social media, the best Android casino fun, and improve your credit score — wins all round!
3) Don’t Close Unused Credit Accounts
If you have paid off a debt or no longer use a credit card, don’t close the account. Put it to the back of your mind and forget about it — but a credit reference agency will remember. Agencies like to see that you’re not maxing out all available lines of credit, so even if the account has been dormant for years, it will still go in your favour.
4) Don’t Apply For Credit Too Often
Yes, you need to use credit to build your credit, but that doesn’t mean you want to constantly be applying for credit. If you apply for too many different forms of credit, then it leaves a marker on your file — it can make you seem desperately in need of money. Lenders don’t like to extend credit to those who are desperate for cash, so you will be refused credit as a result of repeated applications. Only apply for credit once every three months to avoid this.
5) Pay Your Bills On Time
Your utility bills are another financial marker that can impact your credit score. Pay your bills on time, preferably by direct debit so you don’t forget. If you go into arrears, correct this as soon as you feasibly can — arrears on utilities accounts will go against you when it comes to your credit file.
Focus on the above five points and you can bring your credit score right up to where you want it to be.