In today’s world, your credit score is quite important. Not only will your credit score determine whether you can get a mortgage or other bank loan, it will also be checked when you want to sign up for a mobile contract, pay your car insurance in monthly instalments or open a new bank account.
What Is A Credit Score
Your credit score is used by lenders to help them decide whether to issue you with a loan based on your credit history.
If you always pay your bills on time and haven’t been in arrears you will have a good credit score.
However, if you’ve fallen behind with any bills, had your credit accounts sold to debt collectors because you’ve failed to keep up with agreed payments etc, your credit history will be poor.
Get A Credit Rebuild Card
Using a credit card to rebuild your credit is a good way of improving your score. However, it’s a vicious circle because it can be difficult to get a credit card if you have a poor credit history.
There are card companies out there that provide credit to people with a poor score and as long as you use it for small amounts each month then pay the bill in full, it will look good on your credit report.
You can also do the same by looking into smaller loan amounts and making sure you pay them off in full and on time.
Register To Vote
One of the easiest ways to help improve your score doesn’t have anything to do with your payment history, it’s simply to be included on the electoral register.
Being registered to vote means lenders can verify your address and they like to know you have a permanent address.
Another way to improve your score is to pay all your bills on time and never default on payments.
Defaults in the last 12 months will hurt your score more than some from a few years ago.
Reducing all your debt will go a long in helping your score improve.
Building A Good Score Takes Time
Building a good credit score won’t happen overnight. It takes time and planning, especially if your current score is low.
Limiting credit applications, only borrowing what you can afford and making sure all payments are made on time will help the process but you’ll need to be patient.
This is a collaborative post.