Having a good credit score is hugely important as people often need access to credit during important times in their life. This might involve buying a house or a new car or managing a difficult financial period where you need a helping hand to make ends meet. Having a good credit score will not only help you to get approved but also help you to access the best rates. So, what are a few of the best ways to improve your credit score?
Check Your Report
First, you should check your report to see your current rating. Keep in mind that it can take some time to improve your score, so you should start making improvements as early as possible. Make sure you check your credit report for any inaccuracies or fraudulent activities that might negatively affect your rating.
Register to Vote
Getting on the electoral roll is one of the quickest and easiest ways to boost your score by providing further evidence of your address to verify your identity.
Make Payments on Time
You need to show to lenders that you are a responsible borrower, which is why paying your credit card and bills on time is one of the best ways to improve your credit rating. This is why taking out a loan can be a good idea to rebuild your score. It can be tricky as a student, but there are loans for students with poor credit that can help and allow you to start improving your credit score.
Avoid Multiple Credit Applications
Making multiple applications to borrow money can be a red flag and damage your score. Hard searches can stay on your report for a whole year, so you should avoid making multiple credit applications and only apply for what you really need (and what you know you will get approved for).
Get Your Name On the Bills
Having no credit history is the same as having a bad credit history. This is why you need to make sure that have your name on some bills whether this is rent, phone bills, gas or electricity.
Use Low Credit Utilisation
Using credit often but with a low utilisation is smart as this shows that you are a responsible borrower that is in control of their finances. Try to use no more than 30% of your credit utilisation to improve your credit rating.
These are a few of the best ways that you can start rebuilding your score and improving your rating. You always want to have a good credit rating so that you can get approved and a favourable rate when the time comes to borrow money whether this is to buy a new house or if you are going through a difficult financial period.