Empowering you to achieve financial success, one score at a time.
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Your Guide to a Better Credit Score
A healthy credit score is essential for accessing better financial opportunities, from lower interest rates on loans and credit cards to improved chances of securing housing or even employment.
Whether you're starting from scratch or looking to rebuild your credit, our comprehensive guides and practical tips will help you achieve your financial goals.
Ways to Improve Your Credit Score
1. Pay Your Bills on Time
Why It Helps:
Payment history is the most significant factor affecting your credit score. Consistently paying your bills on time demonstrates financial responsibility and reliability.
How to Do It:
Set up automatic payments or reminders to ensure you never miss a due date.
Prioritise paying off debts with higher interest rates first to avoid accumulating additional charges.
2. Reduce Your Credit Card Balances
Why It Helps:
Lowering your credit utilisation ratio (the percentage of your available credit that you're using) can significantly boost your score.
How to Do It:
Aim to keep your credit utilisation below 30% of your total available credit.
Make multiple small payments throughout the month to keep your balances low.
Consider requesting a credit limit increase, but avoid increasing your spending.
3. Review Your Credit Reports for Errors
Why It Helps:
Errors on your credit report can unfairly lower your score. Correcting these mistakes can quickly improve your credit profile.
How to Do It:
Obtain free copies of your credit reports from the three major bureaus.
Carefully check for inaccuracies such as incorrect personal information, accounts that don’t belong to you, or incorrect payment statuses.
Dispute any errors directly with the credit bureaus or the creditor to have them corrected.
4. Become an Authorised User
Why It Helps:
Being added as an authorised user on someone else's credit card account can help you build a positive credit history, especially if the primary account holder has a good credit score.
How to Do It:
Ask a family member or close friend with a strong credit history if they would be willing to add you as an authorised user.
Ensure the primary account holder maintains good credit habits, as their activity will reflect on your credit report.
5. Use a Secured Credit Card
Why It Helps: Secured credit cards are designed for individuals with poor or no credit history. They require a security deposit, which acts as your credit limit.
How to Do It:
Apply for a secured credit card and use it responsibly by making small purchases and paying off the balance in full each month.
After demonstrating good credit behaviour, you may be able to upgrade to an unsecured card.
6. Keep Old Accounts Open
Why It Helps:
The length of your credit history affects your score, so keeping older accounts open can help increase the average age of your accounts.
How to Do It:
Avoid closing old credit card accounts, even if you don’t use them frequently.
If you have a card with an annual fee that you no longer use, consider downgrading to a no-fee version instead of closing it.
7. Diversify Your Credit Mix
Why It Helps:
Having a variety of credit types (credit cards, instalments loans, mortgages) can positively impact your score.
How to Do It:
If you only have credit cards, consider taking out a small personal loan or car loan.
Conversely, if you only have loans, consider applying for a credit card.
8. Limit Hard Inquiries
Why It Helps:
Each hard inquiry (when a lender checks your credit for a loan or credit card application) can slightly lower your score.
How to Do It:
Only apply for new credit when necessary.
If rate shopping for a loan, try to do so within a short period (typically 14-45 days), as multiple inquiries in a short time frame are usually treated as a single inquiry.
Your Ultimate Resource for Improving Your Credit Score!
Improving your credit score is a journey that requires consistent effort and good financial habits.
By following these tips and monitoring your progress, you can achieve a healthier credit profile and unlock better financial opportunities.
We’re committed to helping you navigate the path to a better credit score. Explore our in-depth reviews, tools, and resources to continue learning and take control of your financial future.
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