6 ways to improve your credit

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Sometimes we wish we could go back in time and tell our past-selves off, especially when we realise we have a poor credit rating and need a loan, credit card or mortgage. Building this score up again can be a case of playing the slow game, and here are some tips on how!

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Eliminate Credit Card Balances

One good way to boost your credit rating is to get rid of all the small bits of money you owe on different credit cards. The off £50 here, £25 there can bring your score down as lenders will often look at how many of your credit cards have a balance, rather than how much you owe on each one. The solution here is to gather up all the odds and ends, pay them off, and just keep one or two cards as your go-to’s when needed.

Watch Your Balances

We’ve all been in a financial hole at least once in our lives and racked up a load of debt we knew would be difficult to pay off. It’s okay; there’s no judgement here. One major factor involved with a credit rating is how much revolving credit you have versus how much you are actually using. The smaller this percentage is, the better. To boost your credit rating, pay down your balances and keep them low.

Pay your bills on time

I know, I know, things come up that you can’t predict or save for, and family life is expensive at best and sometimes, just sometimes, paying your credit card bill just isn’t possible. But not paying is what drops your rating hard and will leave you wondering and stressing about how to get instant approval when applying for credit cards. It’s not just forgetting about credit card bills that can turn around and bite you in the backside, but anything from libraries to store cards. Pay your bills on time, every time, and your credit score will begin to rise.

Don’t hint at risk

If you use your card at places that could identify future risks, such as a divorce attorney or pawn brokers, you are letting on that there could be turmoil ahead. Simply by doing this can send up some red flags for credit lenders and lower your credit score. Be wise about where you leave a trail!

Keep Calm and Carry On

Obsessing and panicking will get you nowhere fast. In order to get a good credit rating you need to pay your bills on time and use credit responsibly, and your score will reflect these good decisions. You can keep an eye on your credit rating through companies such as Experian so, in the run up to when you need to make a big purchase, you know exactly what you’re working with.

Rejection isn’t always bad

It’s worth remembering that, sometimes, credit card companies and banks can reject a person simply because they do not currently meet their criteria – for example, they may be looking to boost their numbers of customers who will eventually need a mortgage, and you may not fall under that category.

*this is a collaborative post*

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