“The best deals are reserved for those with the best credit scores”
If you have a bad credit score or just want to improve your score for better deals, we have made an easy guide with simple steps to boost your credit score.
Here are the 8 steps towards an improved credit score.
- Take your credit report
The first step towards a better credit score is to take a look at your credit score. Grab a copy of your credit report from any credit bureau. If you have been recently declined for credit from some lender, then ask for the credit agency they used.
You should take a look at possible shortcomings in your credit report which might be decreasing your chances of acceptance. See if there are some errors and which can be fixed instantly, like wrong information.
- Start paying bills on time
People, very often, forget to pay a credit card bill or loan repayment. The usual reasons are just forgetting the date, or going for holidays in between. By the time they come back or recall the date, it’s late and they make late payment.
But such a practice can have negative impact on your credit rating for a darn long time. That is why it is always advised to pay all your bills on time.
- Build credit history
Maybe you don’t have sufficient credit history to show the lender that you are a responsible borrower. If the lender cannot see that you take and repay the loan in time then you become a potential risk.
The best and easiest way to do this is by using a credit card builder credit card.
- Enlist yourself on electoral roll
When you get yourself enlisted on the electoral roll then it can serve as your proof of address and is checked by the credit bureau investigator. If you are eligible to vote then it can improve your credit worthiness.
Not changing address too often is helpful to your credit report. Remember to update your address everywhere. Make sure the address on your electoral roll is same as on the application.
- Wisely use your credit card
If it is your first time when you are applying for a credit card, then you will get a credit card with very high rate of interest. It is advised that you use the credit card for only those purchases which you can easily pay in full within the interest free period.
Set up a direct debit for the minimum payment from your account.
- Close least used credit accounts
If you had opened many credit card accounts but now don’t use it then you should discontinue all those accounts.
A large overall credit limit can leave a negative impact on some lenders even if unused.
- Don’t apply blindly
Sending too many applications spoil your credit report and can leave traces that may backfire. It is advised to check the possibility of acceptance by online tools.
The tools assess your eligibility without leaving any mark on your reports. But they too have their own drawbacks.
- Check your credit report regularly
Errors can be there always, checking your credit report quarterly or yearly is a good way to analyze your score improvement and look for errors. Amend the mistakes as soon you see them.
It’s easy to get your credit score to boost with a little self-discipline.