Northcash Explains: How Do I Improve My Credit Score?
How to improve your credit score
How to Improve Your Credit ScoreWondering how to improve your credit score? It can be tough, especially if the bills are piling up and you’re having trouble making payments on time. But, it’s far from impossible. Below are some tips on how to improve your credit rating and strengthen your financial position.
How to improve your credit rating in 4 steps1. Check your credit history: It’s important to know your credit history because it gives you an indication of how attractive you are as a potential borrower. Get your credit report and check that it doesn’t contain any errors. Mistakes could be negatively affecting your rating, and fixing them is a step towards credit improvement.
2. Pay down your credit cards: While it’s true that servicing student loans, mortgages and other debt can improve your credit score, the highest improvement comes from repaying opened-end loans like credit cards or lines of credit.
3. Get payment reminders: Do you find that you forget to pay bills by their due dates? Opt for payment reminders in order to avoid this in the future. It may seem trivial, but late payments can have a huge effect on your credit score. Another way to combat forgetfulness is to set up automatic payments, which will ensure that your payments are consistently made on time.
4. Have a few credit options: It may seem counter-intuitive, but using a few different types of credit – a mix of revolving credit and installment loans – can actually increase your credit score, as long as they are managed responsibly.