Credit Score Improvement: Simple Tips for Better Scores.



Posted on: 19th May 2015

It’s hardly a secret that as far as lenders and financial services in general are concerned these days, your credit score really is the be all and end all.

It’s the one thing that’s considered first, foremost, and above all else when making an application for any kind of financial product or service, which is pretty terrifying considering how easy it is to slip up.

However, while it’s natural to assume that your credit score is something that you yourself have little to no control over, this isn’t in fact the case at all. Regardless of your current credit score, or indeed lack thereof, there’s always room for improvement. Contrary to popular belief, it’s perfectly possible for anyone to proactively help improve their own credit rating, not to mention relatively easy to do so.

Here’s just a few tips for improving your credit score and perhaps brightening your financial future:

1 – Get a Credit Card.

It’s a well-known fact that in order to improve your credit score, you first need to take on some kind of credit and prove that you can handle it responsibly. The easiest way of doing this is to obtain one or two credit cards, which should then be used for occasional purchases and the respective balances cleared as quickly as possible. It costs nothing, it’s incredibly easy and it guarantees at least a small improvement to your overall credit score.

2 – Check Your Limits.

Even if you manage to stay in the black and avoid dipping into the red, hovering within a few pounds of your credit card spending limits for months or years on end will not do your score any favours. So, if this is the kind of norm you’ve fallen into, perhaps ask for a small increase in your credit limit and then resist the urge to max it out again.

3 – Check for Errors.

Each and everyday, mistakes are made by lenders and financial institutions that put black marks on credit scores without there being any kind of justification. Sadly, this all happens without the knowledge of the person concerned, which means the only way of finding out is to access your own credit report and see if it’s all in order. If not, be sure to dispute even the slightest of errors immediately.

4 – Mix it Up.

A mixture of credit services can also help boost your credit rating, so if you’ve got a medium or large purchase coming up, consider taking out a low-interest personal loan and then paying off the balance as quickly as possible. It’s all a case of demonstrating how responsible you are as a consumer.

5 – Beware Certain Services.

Last but not least, before applying for any loans or credit services you suspect may be aimed at those with poor credit histories, speak to an expert and do your homework. The reason being that there are so many financial products on the market where even applying for them in the first place can leave a mark on your credit report – even if your application is successful and you stick to the terms like glue.