Since I started being a lot more conscious with my money I have become almost obsessed with my credit score. It is so important to be vigilant with your credit score as it can massively affect your chances of getting a Mortgage or a loan you may need in the future. I have been working on this so hard and here are my tips to see your credit score rocket.
1. Pay off debts
I think this is probably the main thing that we try to do when we want to get back on Financial Track and this is so important. I stopped paying the minimum payments and started paying £500/month to my debts to drastically drop them in a shorter amount of time. This meant that the utilization of my credit was getting lower, faster which your credit score loves.
Once you start paying off loans, your credit score will get better.
2. Get a credit card
Even if you have never had debt of any kind, that can negatively impact your credit rating because if you don't have a history then they don't know what to base your score on. I have a credit card that I spend everything on, all of my groceries, travel and spending then each month I will pay it off in full. I will always stick to my budget so I know that I will have enough money in my account to pay the credit card off.
If you use your credit card in this way and don't just max it out and pay the minimum each month then you are slowly building yourself a credit history and showing that you can responsibly borrow money.
3. Check your details are up to date
Log in regularly and make sure your details are all up to date. There is nothing worse than having something incorrect on your file that has been impacting your score when you could have simply sorted it before.
Make sure any previous addresses have been put in and make sure they have all your accounts. You want to check regularly for fraud or if accounts have said you have missed payments when you think that may be a mistake. It is possible to contact these accounts and if you think they have made a mistake you can request for them to change your credit file.
4. Be Patient
No matter how good you are with money in that month your credit score will only change a small amount at a time. Do not get frustrated, if you keep working at your finances and being sensible then you will see a big difference over time.
Also your credit score can go down as well as up, if you decide to get a credit card, because you have applied for credit your score will go down in that month. But don't let this dishearten you, even if you do not use it, the next month it will go back to normal and if you use the credit card correctly as above it will be worth that small dip.
Hope you liked these tips and can action them to help your own credit score. Is there anything else you have done that has helped your credit?