Before becoming an adult, actually until I left university and entered the world of work I had no idea what a “credit score” was so of course I had no idea just how important one is. Your credit score is much more important than you would ever first think, it can affect you getting a credit card, or a mortgage, or even something as small as a contract mobile phone. If you’re wondering what a credit score is, it’s a rating that shows money lenders just how good you are at paying it back. If you never want to borrow money, fine but a lot of people like to buy cars or even a house and pay it back monthly as these days very few people have the money to pay out right for anything so it’s important to keep it in good shape.
If you have a bad credit score (or no credit score) there are ways to improve it;
Ensure you’re registered to vote
It may seem rather random but being on the electoral register can help your credit score so make sure you’re registered to vote. You can sign up here if you’re not already.
Stop applying for credit
Each time you try and apply for credit a note is made and this can affect your credit score. The more you apply for credit and the more times you refuse the worse it will make you look. If you have a bad credit score stop applying this will help you in the long run.
Make payments on time
For each late payment you have this looks bad on your credit rating. Make sure you always pay on time and never go over the agreed amount.
Pay off existing debts
The logical way to improve your credit score is to pay off all your existing debts. If you are struggling to make payments then maybe looking into consolidating into one loan. If your credit is already bad you may struggle but you could be eligible for a guarantor loan. Guarantor loan specialists such as Glo would help you get a loan with the help of someone else with good credit acting as a guarantor. This could help reduce your monthly payments and mean you only have one payment to make so you should always be on time.
Cancel unused credit cards
By cancelling any unused credit cards you can avoid fraud. Having your details stolen and a mass bill run up would be dreadful for your credit rating so make sure you keep track of everything.
A bad credit score is not the end of the world there is always time to turn things around and help out there to make sure you’re never over your head in debt. You can keep an eye on your credit score by using websites such as Experian and Equifax.