How to improve your bad credit score?
People tend to either be anxious about their credit rating and obsess about it or have no clue as to what their score is. Both can be dangerous as it is important to have an idea of what your rating is, but you also need to know that there are always ways to improve it if it is not as high as you would like.
Having a good rating is important in terms of getting approved for credit as well as being able to qualify for higher limits and lower interest. So, how can you go about improving your credit score?
Check for errors.
One of the easiest ways to improve your rating is to check your report for any errors and to report any wrong information – even something like a wrong address could impact your score. In addition to errors, be sure to check for any fraudulent activity such as someone applying for credit in your name.
Get on the electoral roll.
Another quick and easy way to improve your credit rating is to register for the electoral roll, which is easy enough to do online and obviously would then allow you to participate in important votes.
Pay bills in full and on time.
When it comes to paying bills, you need to always make sure that you are paying these on time but also in full. Many people find it helpful to simply automate their bill payments so that they do not forget.
Keep credit utilization low.
When it comes to using credit to make purchases, you should not shy away from doing this as it can be a smart way to build up your credit score. The key is to use credit little and often, including making sure that your credit utilization is low. Keeping it under 30% is a great place to start, but always aim to decrease this wherever possible.
Limit credit applications.
When you do need to borrow money, you should always try to limit applications and space them out if necessary so that it does not appear like you are in desperate need of money. The key here is to get your credit rating in good health before applying so that you lessen the chances of being turned down.
If you are struggling to get approved for credit, there are solutions in the form of bad credit loans which may be able to help even if you do not have a good credit score. Lenders will typically look beyond your credit score when offering thee products, with affordability checks used to determine your suitability.
It is important to be aware of your credit rating, but you should not panic if it is not a great score because there are ways to improve your rating with the above being a few of the best options. The sooner that you start, the sooner your rating will improve which is why you should check your rating often and well in advance of needing to borrow.