It’s totally normal to worry about money – after all, it makes the world go around. Many people live to a budget and keep a careful eye on their incoming and outgoing cash. This is so that they can make good living decisions while ensuring they can save money at the same time. A good credit score is part and parcel of that worry and most people have no idea how they can make sure they have a good one.
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A good credit score doesn’t just affect your ability to gain credit. It can see you turned away for jobs that you are more than capable of doing, and even lose you the chance of a mortgage, as a bad credit score can look like you cannot effectively money-manage. There really is no way you can immediately increase your credit score, but that doesn’t mean you cannot give it a good boost. We’ve got some ideas about how you can raise your credit score or even maintain your credit report, so check out the list below:
1.) Increasing your line of credit may seem counterproductive, but it’s one way to help your credit score. If you haven’t got one already, do an online credit card comparison and speak to the chosen issuer to see if you have the option of a credit increase that doesn’t leave a hard search on your file. Hard searches can affect your score, so if they offer it without one, take it!
2.) It’s an obvious solution to clear up your credit, but pay off your debts. Pull up your credit file, take a note of where you owe money and make a plan to pay off everything outstanding. Once these are paid off, your score will improve astronomically.
3.) Where you can, pay in cash and not in credit. When your credit utilization ratio is calculated, the credit agencies never take into consideration whether you carry a balance, just the closing balance of the statement even if it is paid in full on time.
4.) As soon as you are able to, consolidate your cards. Any balances on the newer cards should be moved onto older cards. This is so that you can increase the length of time you have your credit lines open. Consolidation is a good way to centralise your card usage so you are more reliable with your money, rather than having several unpaid balances.
5.) Read your report. For most people who want to start figuring out their credit score and making improvements, they forget the one key item is to actually read their score. You could speak to places you owe money to if there are discrepancies and get marks on your credit removed to help you move forward.
6.) Don’t keep taking credit out to improve your score. There has to be a balance. To have a credit rating, you need to have a trust rating with borrowers, but being in debt can also hurt your credit file. Take out one line of credit and keep on top of it. Don’t be tempted by ‘free’ money – nothing is free!