How To Improve Your Credit Score

Many people have asked me how I improved my credit score. So I’m happy to share the facts. Please bear in mind I’m not a Financial Advisor. I’ll share my story. This is how I got my healthy score…

I basically didn’t understand anything about credit scores, until I decided to read up on it further. I thought maybe someone has used my identity, and ruined my finances. While that can happen, you can easily raise a dispute or claim with Equifax. Anyway I learned that it wasnt because of anyone else than myself. I was never reliable or paying bills in an organised fashion.

Then I leaned the power of Direct Debits. And how they can reduce my bills, they can also come out on my payday. It’s easy to set up.

KEEP MAKING REGULAR PAYMENTS

Next I got a card to improve my credit score. Loqbox I think it was called. You basically loan yourself some money and pay monthly. I’m not sure exactly, but you pay a monthly fee. A card or subscription like that csn definitely help start het you back on the right track.

I got a 2nd card like this. They have now changed their name to Zempler. Keep going until your credit score rises.

PAY BILLS, STAY IN TOUCH RESTART DD

Next of all I did some *freelancing. Whilst continuing to pay all my bills, I was sub contracted, which means another company was paying me on a regular basis. This helped quite a bit. Having regular income or payments means you’ll be able to pay off any credit, should you ever need to borrow.

GET A REGULAR INCOME OR MULTIPLE

I made a switch of my current account, Earned £150 + 5 per month, and another cash bonus. It was great. Bank switches are good because they keep your direct debit payments going, and any old payments or refunds will also land in your new account, guaranteed.

TAKE ADVANTAGE OF BANK SWITCH

Now in total I had a great start to apply for a credit card. My first one was Zable, and I got a £50 limit. If you pay the entire £50 on payday theres no interest to pay. Later I got a couple of increases. And it was as easy as that.

APPLY FOR A CREDIT HELPING CARD

Some cards are not credit cards. They just help you to improve your credit rating.

I will add that people should try not to go over, not borrow more than they can afford to pay back, and try not to overdo it. Otherwise you’ll be paying monthly interest. And it will show up on your credit file. They can also ask for the entire sum if you go over too often.

This was my example of how I went from zero, to matching everyone in my area. It took 2 years + and I make sure to pay my bills, keep in touch if I miss one. So far so good.

Borrowing money isn’t an ideal solution in the long run, and it could make you get in debt if youre not careful with your spending. It’s best to budget ahead.

For special purchases like motor, appliances, moving homes, holiday, it’s definitely worth it. But for daily spends it’s not recommended to exceed yourself.

It’s very handy at times. But take credit seriously, if you don’t understand it properly, you could end up in debt.