If you don’t put much thought into your credit score, think again. This record will be with you for your entire life, and will have a major influence on many of the financial decisions you make in your life, as well as the decisions that others make about you. A poor credit score can make life far more difficult in the long run, leaving you with few options when it comes to loans, credit cards, and even your future mortgage. If yours is less than dazzling, don’t stress. There are several things you can do to boost your score and impress future lenders.
- Manage your debt well. One of the main points of a credit score is to demonstrate to lenders that you are able to manage your debt consistently. If you’re behind on some repayments or struggle with an overload of debts, now is the time to tackle the problem and begin rebuilding your credit. The experts at Think Money can certainly help with this aspect of your financial future. They will look through your current debts and help you to come up with a strategic repayment plan, allowing you to recover your credit score and restore your sense of financial security.
- Know your score. Despite how important your credit rating may be, there are plenty of people out there who are simply ignorant about how well they come across on paper. If you haven’t checked out your credit record before, take the time to do so as soon as possible. You may be pleasantly surprised, or slightly concerned by the results, but either way the knowledge gives you the power to take control of your credit rather than letting it slip unnoticed.
- Keep your credit account open. Even if you’re extremely sensible with your money and always live within your means, you could have a poor credit score simply due to the fact that you don’t have active credit accounts. Lenders need to see some history of credit in order to make a judgement about your financial credibility, so try to have at least one active credit account that you maintain well at all times. This can be as simple as signing up for a phone contract or registering your utilities in your name – all of these will add up to provide a positive credit reference for the future.
- Make regular repayments. The worst thing you can do to your credit score is to avoid making your monthly repayments on any active accounts. Overdue payments will show up on your credit score and remain there for years to come, so pay your bills on time to avoid long-term problems.
- Keep a solid savings account. Life can be unpredictable, so it’s always helpful to have a savings account stocked up so that you can make your bill payments on time regardless of your monthly circumstances. Save as much as you can in a high interest savings account, and try to avoid accessing this money unless it’s absolutely necessary to do so. This will prevent you from defaulting on debts or damaging your credit score for any reason, as well as providing much-needed security for the years to come.
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