A bad credit score can cause all sorts of problems when it comes to applying for financial products.
Before a bank or credit card company decide to lend you money, they will look at your credit score.
The higher your credit score, the better your chances and the lower the interest you will pay.
Everyone is entitled to see their credit score – in fact, you are strongly encouraged to do so if you haven’t already.
Get a copy of your credit score and ensure the information is correct; if anything is wrong, you will have the chance to put it right.
Best Ways To Improve Your Credit Score
So to prove your creditworthiness, you will have to apply a credit card, only spend a small amount on it each month, and it off regularly and your score will be improved.
Below are ways through which you can improve your credit score:
#1.) Make sure you are on electoral roll
Best move to make
If you have recently moved house, you can request to update your details on electoral register. You should either contact your local Electoral Register or visit their website.
#2.) Space out applications
Best move to make
Always try to do one thing at a time for your own good sake. Do not apply for lots of financial products like credit card, loans, mortgage and others at once. Lenders will wonder why, and you will get your credit score reduced.
#3.) Never miss a payment
Best move to make
If you are getting behind your payment schedule, the best thing to do is to contact your creditors and discuss your situations. Some creditors are considerate and you might be lucky to get payment reschedule. Therefore it is better to get in touch rather than panicking.
#4.) Cancel old accounts
Best move to make
Try to cancel all unused cards and bank accounts so there aren’t lots of things in your name. Make sure you are maintaining the remaining ones as well.
#5.) Protect yourself
Protecting yourself from those guys out there that are willing to steal from you is very important if you are really interested in improving your credit score. Quite lots of people have lost huge amount of money to identity theft. Also, if you have been involved with someone who was bad with money, you should write to the credit agencies and ask for a “Notice of Disassociation” so you that you will not be affected by their bad reputation.
Best move to make
Modern technology means that it’s much easier for people to steal your identity and use it to purchase or order stuff without your knowledge. Therefore, the best thing to do is to keep your bank and credit card details safe. Don’t use your card anyhow and watch out for fraudulent online e-commerce shops.