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How Can I Improve my Credit Score?

These days, we will often hear a lot of talk about credit scores and the need to have a good one. It can be a bit worrying as well as confusing and we may think that we should be concentrating on improving our score. This can be worthwhile but it is not always easy to know what to do or where to start.

Check Credit Record is Correct

The first thing to do is to have a look at your credit record and make sure that the information on it is correct. You will find that there is a lot of information on there and sometimes it can be out of date and so it is a good idea to take a look at it and see whether this is the case with this. It might be that you have ended contracts or repaid loans and this has not been reflected on the report so just make sure of this and you will be able to contact the company that has not reported it correctly to have it changed. This is an easy thing to do and could make a big difference.

Pay things on Time

It can be a good idea to also make sure that you pay for things on time. It will be noted on your credit report If you are late paying for something such as a loan repayment or utility bill. Prospective, landlords etc will see this and it will be a cause for concern. They will worry that it could mean that you will not repay/pay them as required and this could put them off completely. Others may charge you more so they can have more money when you do pay to cover the costs of you missing a payment. So work hard to make sure that you always pay everything on time and in full.

Pay off Loans

It can look better if you do not owe money to too many people. If you have a lot of commitments with regards to repayments to make it may make lenders feel that you cannot be trusted. This is something that you can change by paying off some of the loans. They will then feel happier in two ways. Firstly, they will not worry that you are paying out so much money for various loan repayments that you will not have enough for their payments and also it will not look like you are so desperate mor money. Looking desperate indicates that you are not managing your money very well which is not a good thing.

Do Not Apply for Lots of Loans

If you apply for lots of loans, this can look like you are desperate for money as well and could put people off. It will also look bad if you get turned down for a loan. This could put people off before they even look at your credit report in any detail. They may see a rejection and automatically follow suit without even considering why you were rejected and whether it is something which matters to them. So be extremely careful and try to check with lenders whether you will be likely to be turned down before you apply.

Have a Decent Salary

Having a permanent job and having a decent income can be something which will really go in your favour. I know that it is tricky for some people to do this, but it might be something that some people have a choice about. For example, if you are freelancer, temp worker or on a zero hours contract, this may not look good and so if you can find more permanent employment then this can help you to be able to impress better and therefore have a better credit report.