You may not realize it, but having a good credit score is something that is very important and impacts many different parts of your life.
The better your credit score is, the more likely you are to be accepted for things like mobile phone contracts, credit cards, and mortgages.
This is why it is important to do what you can in order to improve it.
Some of the things that you can do are listed below.
Top 6 Ways to Improve Your Credit Score
1. Make regular and on-time payments
Paying any accounts that you have both on time and in full each and every month shows to the lenders that you are a borrower who is reliable and capable of responsibly handling credit. Having a long-standing and well-managed account is something that will give your credit score a big boost. However, it is important that you are aware of if there are any potential impacts of not using any credit cards that you may have.
2. Not moving house regularly
Whilst this may not always be possible given your particular personal circumstances, it is important to be aware that lenders like to see that all of your circumstances are stable, including your living situation. By moving house regularly, some lenders may jump to the conclusion that you are having difficulty with paying rent or utility bills, etc.
3. Build up your credit history
Not having much or just a little credit history actually makes it very difficult for lenders to be able to assess you as a borrower and so this may equate to being awarded a poor credit score. This is often a problem that younger people or those people who are new to living in a country experience. However, there are things that you can do in order to build up your credit score.
4. Provide proof of where you live
If you have not already done it, make sure that you register on the electoral roll at the address where you currently reside. This can be done even if you are living with your parents or if you are living in some sort of shared accommodation.
5. Get a credit builder card
An effective way of improving your credit card is by getting a credit builder card. These types of cards usually have high-interest rates and low or limited spending limits. Although when you initially take out a credit card it may actually cause your credit score to go down, if you use it well in the long term, it will work to give your credit rating a real boost.
6. Keep your old accounts open
Keeping accounts open for a long time, shows lenders that you are able to successfully manage your credit accounts over time. This is a positive to the credit scoring models used.