Created by: Katherine Locke | 14 August 2019

Nothing Will Change Until You Take Action. Improve Your Credit Score Today.

Keeping an eye on your credit score is part of modern life.  If we want to borrow money, for example, to buy a house or a car, or even just to tide us over, we need a healthy credit score to do so.

If you have just checked your credit score recently and it is not as good as you hoped, you are probably wondering what to do to improve it.  Turning a poor credit score around is hard work, but it is not impossible, and there are actions you can take that will definitely improve your score.

Here are five things you can do to help:

  • Reduce your Current Debt
    This may be easier said than done, but if you are getting deeper and deeper into debt (especially credit card debt), it might be worth taking a long hard look at exactly how much you owe and how you might start paying it down.  Credit card rates are very high, and you are paying a lot every month.  Calculating what you owe and making an arrangement to pay off the debt with a monthly fixed amount will really help your score.  If you need to, keep just one active credit card with an impeccable payment history, rather than lots of open credit card accounts being used each month.

  • Pay Your Bills On Time
    This is a vital step to keep your credit score on track.  Missing payments, even by just a few days, has a disastrous effect on your score.  This is because credit companies are very sensitive to risk and late payments mean a risky investment.  Think about it, who would you lend a tenner to?  Dave, who you know will pay you back tomorrow because he always has, or John who might pay you back at some point in the future when it suits him.  Makes sense?

  • Don’t Open Lots of New Accounts
    The length of your credit history is an important factor when establishing credit scores.  If you don’t have a lot of credit history information, opening lots of new accounts in a short space of time will lower your credit history age and therefore negatively affect your score.  Lenders like as much payment information as possible to asses risk.  Again, would you lend a tenner to someone you have only just met?  Most of us wouldn’t and loan companies are the same.

  • Take It Easy
    Building a good credit score can take time, but really it is just about cultivating good financial habits that will stay with you for life.  In a world built on credit, it can be really easy to lose your way.  Being continually offered credit cards, or loans which look like a great idea of the time can quickly mount up into unmanageable debt and poor credit scores.
    Keeping things simple is the way forward. You can do this by:
    • Keeping your debts low 
    • Paying your bills on time 
    • Using credit responsibly

If you are struggling with debt and failing to make the payments, it is definitely worth getting professional advice. Working out affordable payments and sticking to them, is the way to rebuild a very bad credit score. Getting further and further into debt is the worst thing you can do. Financial matters don’t have to be scary, but they do require some attention and a cool head. Just think about who you would lend a tenner, to understand how to behave around money.

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