3 Tips to Improve your Credit Score
Posted on Sep 16, 2024Everyone should take time to check their credit score. Whether you want lower interest rates on credit cards, better deals on mortgages, or even more affordable insurance plans, a strong credit score can help. But if you’re not keeping an eye on it, you might miss dips in your score or opportunities to improve.
With the rising cost of living, managing your credit score has never been more important. That’s why we’ve put together three simple, effective tips to help boost your score and keep your finances in check.
Firstly, you need to know what your credit score is. Knowing your current credit score will help you understand how to make changes to improve this. Click here to view your credit score with Credit Monitor.
1) Check your information
It is important you make sure all of our information is correct and up to date. Ensure there are no errors in your name, address, date of birth and previous payments. If you spot an error like a ‘missed’ payment that you actually made, you can submit a notice of correction to the credit reference agency. If you address is correct, being on the electoral roll can help improve your score. If you aren’t registered to vote, click here to get started.
2) Build your credit history
Having no credit history can impact your credit score. Credit reference agencies, as well as lenders, have no information to go on when deciding whether you will be able to meet the required repayments. This means your credit score could be lower and your ability to acquire credit may be more difficult.
Where to get started
If you think you may need to take out a large amount of credit in the future, such as car finance or a personal loan, it may help to begin working on your credit score early. Taking out a credit card may be a worthwhile option in building your credit history and prove to lenders that you manage your money well and are able to meet repayments. Always make sure repayments are affordable to you.
You can find more ways to start building your credit history here
3) Pay on time
Even if it is the minimum payment, it is essential you pay on time. Missed payments are marked on your credit report and influence your credit score. If you are looking for a loan, a credit card or car finance, lenders may look at your credit report, and missed payments can affect their decision to lend to you.
Credit utilisation
Keeping your credit utilisation low means keeping the amount you owe, lower than your credit limit. We understand from time to time, we all need to borrow. Keeping your credit utilisation low shows lenders than you are managing this well and aren’t overspending. If you need to borrow, remember to check the repayment amount and make sure this is affordable to you
If you’re looking to begin building your credit history, or are looking for an alternative to a bank loan, check out our loans – with great rates starting from just 2.9%.