One of the most crucial indicators of your financial wellness will always be your credit score. It shows creditors, at a glimpse, how carefully you utilise credit. The higher your credit score is, the simpler a process it will be for you to obtain finance. And when you do next need to borrow money, a higher credit score might introduce you to the lowest accessible interest rates.
Checking your credit score is free and easy. And if your credit score isn’t in the state that you would like it to be in, here are several straightforward things you can do to boost it.
- Ask for higher credit limits
When your credit limit is increased but your debt remains the same, your total credit usage is reduced, which might help you increase your credit. You have a good chance of acquiring a larger limit if your salary has increased or if you’ve accumulated more years of good credit. This is highly influential on your credit score, because utilisation is a huge factor in the overall rating.
This is a very simple way of increasing your credit score, as it takes very little time and commitment. Simply reach out to your credit card company and request a larger credit limit. Check to see if you can avoid enduring a hard credit inquiry, as that could lower your credit score.
Your credit score is determined by a range of factors. If you have bad credit but need a set of wheels, you can find a range of bad credit car finance options from specialist firms like Car Finance Genie.
- Pay bills on time and don’t miss payments
Lenders don’t like it when borrowers don’t pay them within a given time period that they were meant to pay by, so you should make sure you pay on time every month. Payment history is a key factor that affects your credit ratings: having a lengthy record of payments that have been paid on time can help you attain a great credit score.
By ensuring you don’t miss loan or credit card payments by more than 29 days, you will help to increase your credit score greatly. Late payments of more than 30 days might be passed on to the credit bureaus, lowering your credit score.
You can easily make sure you never miss a payment again by setting up payment reminders. When a bill is due, creditors are eager to remind you. Nowadays, credit card companies make it even easier for you to never miss payments by allowing you to set up automated reminders, which can take the form of an email, text message, or even a notification via your issuer’s mobile application if installed.
- Resolve credit report errors
Your credit score might be lowered as a result of a mistake on one of your credit reports. You can immediately enhance your credit score by resolving credit report inaccuracies. Credit reports provide in-depth information about your credit situation and history. However, agencies and creditors might make errors on some reports, so it is best to check.
So, when your reports are updated and accessible, take some time to go over them. If any errors have been made by the bureaus, let them know right away to fix the problem. You might be very thankful for having done so when you next need to obtain car finance!