Your credit score directly affects how eligible and able you are to borrow money. It should be noted that your credit score cannot be altered overnight; it is a process that takes time to show results. In fact, a ‘quick fix’ may sometimes hinder as opposed to help, so be wary of any company which claims to be able to do so. Being responsible overtime is the main method of creating a strong and healthy rating – check out some of our top tips to build up the legitimacy of your score:
Immediate Steps to Take
Your credit score may be poor not because of previous debt, but because there is no financial history attributed to you. You can take these easy steps to remedy this:
Ensure to Pay Punctually
When you have repayments pay early or at least on time. This shows that you are a sensible and responsible borrower. You can set up payment reminders through online banking or on your phone if you tend to be forgetful. You may also opt to set up automatic payments from your savings account to your credit/debit card – but be aware if you only pay the minimum amount on your card, your rating will not improve as readily.
Use a Credit-builder Prepaid Card
There are several prepaid cards on offer that have an option to build your credit. If you fulfill the required obligations then your credit score can be improved. Basically, you are loaned an amount (not an overly large fee) and you sign an agreement that you will reimburse the lender with a monthly fee over a year. Provided you do not miss any payments, you will have 12 months of positive repayments listed on your credit score. It is worth noting all lenders charge an interest rate for this service, so research into the best deal.
Be Sure to Check
It may seem obvious, but make sure to check your credit report so you can fix any problems or mistakes. If you do find any issues, try and challenge them as soon as possible. Remember it is best not to bury your head in the sand when it comes to your finances, keep records and be aware of your incomings and outgoings as much as possible.
If you Feel Yourself Getting Into Trouble, Find Help
You can contact creditors or seek a legitimate credit counselor if you feel you are having trouble. They won’t be able to mend your credit score, but they can assist you in managing your finances so your rating doesn’t continue to fall.
Immediate Steps to Take
Your credit score may be poor not because of previous debt, but because there is no financial history attributed to you. You can take these easy steps to remedy this:
- Put yourself on the electoral register
- Cancel any unused credit cards
- Don’t apply for credit until you have rectified any problems
Ensure to Pay Punctually
When you have repayments pay early or at least on time. This shows that you are a sensible and responsible borrower. You can set up payment reminders through online banking or on your phone if you tend to be forgetful. You may also opt to set up automatic payments from your savings account to your credit/debit card – but be aware if you only pay the minimum amount on your card, your rating will not improve as readily.
Use a Credit-builder Prepaid Card
There are several prepaid cards on offer that have an option to build your credit. If you fulfill the required obligations then your credit score can be improved. Basically, you are loaned an amount (not an overly large fee) and you sign an agreement that you will reimburse the lender with a monthly fee over a year. Provided you do not miss any payments, you will have 12 months of positive repayments listed on your credit score. It is worth noting all lenders charge an interest rate for this service, so research into the best deal.
Be Sure to Check
It may seem obvious, but make sure to check your credit report so you can fix any problems or mistakes. If you do find any issues, try and challenge them as soon as possible. Remember it is best not to bury your head in the sand when it comes to your finances, keep records and be aware of your incomings and outgoings as much as possible.
If you Feel Yourself Getting Into Trouble, Find Help
You can contact creditors or seek a legitimate credit counselor if you feel you are having trouble. They won’t be able to mend your credit score, but they can assist you in managing your finances so your rating doesn’t continue to fall.