A good credit score is really important for your financial well-being. All banks and lenders check your score before approving your credit card and loan applications. If you have a high credit rating then there are more chances that your loan and card applications get approved.
Bad credit people always struggle to get loans as no financial company wants to take a risk. If somehow they get loans, then high-interest rates are usually charged on them. On the other hand, high credit rating customers always get preference plus loans are available at lower interest rates to them.
You can’t improve your credit score overnight. You have to give constant efforts to boost your score. Here, we present top 10 smart tips to improve your credit score.
1. Never Miss Credit Card Payments
Your every financial action has an equal reaction on the credit rating. If you miss credit card payments and start behaving default then it will badly hit your score. Start paying all credit card bills on time. It will slowly but surely improve your financial rating. Set a payment reminder, or download an app so that you never forget a bill due date.
2. Don’t Use Multiple Credit Cards
There is no point of keeping multiple credit cards as paying too many bills sound unpractical. Don’t keep more than 2 cards. More cards mean more chances of overspending and hence more debt. Sometimes, you pay a card bill using another card then pay the second card’s due bill with the third card and so on. It is a tangle of debt. Just clear all dues and if you want to close them then don’t forget to get “No Due Certificate” from your bank/card company.
3. Make an Effective Plan to Pay off Your Debt
Paying off the whole debt sounds very tough, but you have to plan a financial strategy to live as a debt-free person. One debt leads to another debt and your credit score goes down. Make a proper monthly budget and divide your full salary into 5 parts – money for daily expenses, money for the family, a contingency fund, money for card bills or debt EMIs, and saved part for future. Stick to your budget and don’t be hopeless.
4. Say NO to Fresh Credit Card Applications
Too many card applications decrease your credit rating. Whenever you apply for a credit card, the concerned bank/card company raises a query with the credit bureaus and hence results in a poor score. Be happy with your present cards and pay all bills on time to come under the category of a good scorer.
5. Take a Debt Consolidation Loan
Taking a debt consolidation loan is a good idea! It allows you to merge your financial liabilities into one and you need to pay just a single EMI per month. Such loans are easy to handle. Once you have paid all card bills and cleared other debt then it will surely boost your credit score. But you have to ensure you pay a monthly EMI to pay off the availed debt consolidation loan as per the agreed tenure.
6. Avail a Guaranteed Personal Loan
There are various lenders and brokers in the UK who offer guaranteed personal loans to the bad credit history people. They don’t check your credit rating at all. Availing an assured loan will allow you to pay off various card bills and other small debt. Timely repayments of the personal loan will boost your credit score.
7. Apply for a Credit Report
There are various cases where people have found errors and discrepancies in their credit reports. You can apply for a credit report from any of the credit reference agencies of the UK: Experian, Equifax, and Callcredit. Properly check your credit report. A wrong report filed by the lender can decrease your rating. Always match your repayment dates with the lender provided information. You have the right to dispute errors.
8. Frequently Use your Debit Card
The usage of the debit card should be your new priority to control the more damage that a credit card can do with the rating. There will be lesser card bills and hence lesser chances of late or no payments. It will indirectly improve your credit score.
9. Get Professional Assistance
If you are inexperienced and confused how to boost your card score, then take help from a reliable credit consultant. He will charge you but assist you in clearing bad score’s mess. Just search online for the top credit consultants in the UK and get the services of the best one. You don’t have to go anywhere. Your credit counsellor can assist you through meetings, calls or Skype or emails.
If you don’t have any credit card and want to boost your credit score, then apply for a secured credit card. A secured credit card is a card where you have to open a fixed deposit account with the credit card bank and put some money as a guarantee. You can use secured credit card smartly and repay on time. It will improve your credit score.
A solid credit history is highly desirable because of many reasons. It can affect you when you finance a car, take a home loan, avail a personal loan, start a business, search for jobs and more. So, you should take your credit score seriously. It is a small world. You can’t run off after doing financial fraud. It will always haunt you. Follow our tips and boost your credit score before it gets too late!
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