Three Ways to Start Improving Your Credit Score

Mary Youlden's picture
Authored by Mary Youlden
Posted Tuesday, July 9, 2019 - 9:35am

If you keep finding yourself being denied credit cards or loans and are struggling to be approved for financing or a mortgage, then you may need to do something about raising your credit score. Building your credit score, particularly if it has been damaged in the past, is not a quick or simple process, but there are several things that you can do starting from today in order to improve what potential lenders see when you apply for any kind of credit. Here are the best things to do if you want to improve your credit score. 

#1. Borrow Money You Can Pay off Quickly:

If you’re struggling to get accepted for credit because you simply haven’t borrowed before, the easiest way to do this is to borrow some money that you’re going to be able to pay off quickly. There are many different ways in which you can do this – a SIM only phone contract for thirty days, a credit building credit card with a very small limit, or even a catalogue account can be a great way to get something on your credit record that shows lenders you’ve borrowed before and were able to repay what you owed quickly. You might even want to consider bad credit payday loans; you can borrow a small amount of money that you’ll repay in full on your next pay day, making it quick and easy to deal with whilst putting a positive factor on your credit report. 

#2. Pay Your Credit Card Down to 50%:

If you already have a credit card and you’ve maxed it out, then paying as much of it off as possible rather than sticking to the minimum payment each month is ideal if you want to see your credit score improve. As a general rule, you should aim to always have at least 50% of the credit available on your credit card. For example, if you have a £1,000 limit, then always try and have £500 available to spend. This shows potential future lenders that whilst you have the credit available, you’re not relying on it. Similarly, if you’ve repaid your credit card in full, it’s always better to leave it open rather than closing it – even if you don’t plan to use it. 

#3. Check Your Report:

Don’t believe the myth that checking your credit score is going to harm it. You can use a credit report checking service to keep up to date with your score as many times as you need to, and it’s a great way to see all the factors that are helping and harming your score so you can determine what you are going to do about each one. It also gives you a great opportunity to check your report for any errors or discrepancies that could be harming your numbers without you knowing. If you do find something on your report that doesn’t look right, you can dispute it and have it removed. 

If your credit score is at the lower end of the scale, then improving it can take time. Get started with these three strategies to help improve your credit starting today.