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The past few years have been tough – I’ve had a lot going on in my life and my credit rating has taken a total battering. With us planning to buy a house thus getting a mortgage in the not too distant future, my credit score can not afford to be low and I’ve been taking steps to build it up.
But how can you build up your credit score?
Pay Off Debt
If you cut down your debt, then your credit score will increase – however, you don’t want to pay everything off too quickly as that can cause your score to drop down even more. Paying off quickly but steadily will ensure that whilst your debt goes down, your score goes up.
How can you pay off debt? Take on overtime at work, sell your old things, make a budget – throw every single penny at it and it will soon disappear. If you try to pay well over the minimum payments each month you will see that your balance goes down much quicker as there won’t be as much interest to pay.
Register on the electoral roll
Your name needs to be on the electoral roll for if you want to get credit in the future – and it also helps boost your credit score if your base address is known.
Check It Regularly
Make sure you are checking your score on a regular basis to ensure that there are no errors. If there are, you can catch them early and get them wiped off your record.
A credit rebuilding credit card can help to build your credit, providing you manage to keep up repayments. Bear in mind that these are often only available from higher interest providers so that is something to think about. If you have the available funds to do so, consider taking out a loan or something similar such as one from Cash Lady and pay it off ASAP – it will show credit taken out and full repayment satisfied on your score which should help boost it. I must stress though that you should only take out credit if you can afford the repayments – which leads me to my next point.
Pay on time
I’ve struggled with this in the past few months just before Steve got back into work as my income was struggling to match my outgoings some month – however I am back on track now and pretty much caught up. Paying on time is so important. Sometimes we can’t help it if a bill is missed – these things are sent to test us after all but try to get back on track as soon as you can. You want to avoid a default or County Court Judgement on your file. I currently have a default that will remain on my file for a few more years although thankfully the account will be settled next month so it isn’t as bad as it could be – I’d much rather not have the default though!
These are a few ways you can build your credit score – do you have any suggestions?