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.

Make Timely Monthly Payments

Paying bills, lenders, and subscriptions/contracts on time is the first step. The second is credit builders.

I got a Loqbox card. 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 get you back on the right track.

I got a 2nd card like this called Zempler. Keep making regular payments until your credit score rises.

Get Money In Your Bank Account

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.

Opt For A New Current Account

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.

Apply For A Credit Building Credit Card

Now in total I had a great start to apply for a credit building 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.

Check Out More Credit Building Places

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

Summary

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 people in my area. It took 2 yrs. I’m glad I did.

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 always make sure to budget well.