Your credit score is one of the most vital pieces of information that companies can hold about you. It is used to determine all manner of things – from whether you can get a mobile phone contract to buying a house. Which means that having the best score that you possibly can is important. Thankfully there are ways and means to improve your credit score to ensure that you are able to get the credit that you are applying for, whether it is a loan or a credit card.
Tricks to Improve Your Credit Score
The first thing you need to do, before using any tricks, is get a copy of your credit report (you can usually get this free). From your credit report you will find out a lot of information that you can use to improve your credit score.
- Fix Mistakes. The credit report is partly done by people – and people make mistakes; but also partly automated but, guess what, computers make mistakes too. It could be that it says that you have outstanding debt when you don’t, or that you have a different address. This can be a particular problem if you have just moved and aren’t yet registered to vote at your new address. Even small things like spelling your surname slightly wrong can stop your credit application.
- Clear your Debts. Especially your outstanding rather than ongoing debts. Any debts that are overdue will count against you when you apply for credit. Make it your mission to never miss a payment.
- Make Payments. Make sure that you have some credit out (credit cards, mobile phone etc) and that you pay the minimum (at least, ideally more) every month. The more you do this on a regular basis the more credit companies will trust you. set up direct debits or standing orders with your bank if you have a tendency to forget when payments are due.
- Use security. If you are still having trouble getting credit it might be worth offering something as security. For small borrowings this could be your car, or a computer… for larger ones your home may be the only thing that would be accepted but we would strongly advice seeking proper financial advice before doing this – or better still, just don’t do it.
For many people simply one or two of these tricks could solve their credit problems… have you given them a go yet?