For many, it can be difficult to improve your credit score, as it’s more of a long process that will need to be worked on gradually. If you have got yourself into trouble with money and you want to start improving your financial situation, starting with your credit score is the best option.
Your credit score reflects your financial health in general and will be used by banks and lenders if you want to take out loans, mortgages, or phone contracts for example. Here are some ways you can improve your credit score…
Make sure you pay all your bills on time
One of the ways you can make sure your credit score is rising, not dropping, is by paying all your bills on time. This indicates you can manage your money and you are responsible enough to avoid getting into debt with companies you rely on.
Don’t let any standing orders in your bank go unpaid and make sure you have enough money in your bank to cover your bills when they’re due, if they bounce back and decline you will start having problems. Your credit rating will go down if you let payments bounce.
If you can no longer afford your phone bill, look for cheaper options or try and solve the problem. Some people will need to use loans with no credit check to get back on track with their money, however, these are only recommended if you can pay them back.
Use a secure credit card and pay it off on time
Using a secure credit card is a great idea for those who usually spend too much money and can’t afford to pay it all back when the bill comes through. A secured credit card will ensure you pay all the money upfront before you spend it, this offers a more safe controlled way of spending. This credit card method will help you improve your credit rating as you’re making payments on time.
Check your credit score and see what’s being flagged up
There are many companies that will let you check your credit score online, it usually updates once a month and shows you why it might be low. If it does appear to have fallen, most websites will tell you exactly why. This makes it easier to know where you’re going wrong so you can put things right.
Most websites are free but sometimes you will have to pay a bit extra if you want a detailed report of your credit score and what’s affecting it.
Stop applying for more credit
If you’re someone that regularly applies for credit cards or loans, you should stop this now as it will have a negative effect on your credit. Only apply once in a while if you really need a loan or something to help you out with your finances, if you constantly apply and get rejected you will look desperate and banks are unlikely to trust you with money in the future. It’s best to stay as comfortable with money as possible and don’t spend the money you have recklessly.
Now that you have some top tips on how to improve your credit score, you can put them into action. Your credit rating isn’t something that will change overnight, and it could take some work if you are currently in debt and unable to pay bills off.
