Is your credit score looking a bit low? Wondering what determines a good credit score in the first place? Let’s take a look at a few factors:
- Payment history: Do you pay your bill regularly and on time?
- Amount owed: How much money do you owe to various lenders?
- Credit history: Sometimes, having no credit history can be a negative, but all in moderation!
- Types of credit: Do you have various credit cards, clothing accounts etc?
So how do you improve your credit score? Here’s how:
Pay your accounts on time and pay the full amount owed
The most important thing you can do to improve a bad credit score is to pay what is due and always pay it on time. Remember that when lenders look at your credit report, they want to see how reliable you are when it comes to paying bills, so always pay your bills on time and if you’re behind make sure you get them up to date as soon as you can.
Say bye bye to those credit cards
Always pay attention to this high interest debt first. If you have too many old, unused credit accounts, consider closing them. Have an active credit card? See point 1 and make sure you make regular payments on time! Applying for credit? Think twice if you’re already in debt because this will show up on your credit report, which could have a negative impact on your credit score. Why? A lender could see this as irresponsible behaviour and could lower your rating.
Minimise credit inquiries and keep them few and far between
Whenever you make a credit enquiry or new application, it’s added to your credit score. Only apply for credit that you need. A lot of inquiries will affect your score and possibly raise red flags. Applying for too much credit also reflects that you have too many or that you have been declined by other credit providers, yet continue to apply until you are successful.
Act quickly and don’t avoid the situation
Do you know that your credit score can be irreparable for up to 8 years? Just remember that it’s never too late to get on top of debt. If you can’t pay one or more of your monthly re-payments, speak to the company and come to an arrangement with them, but don’t avoid or ignore the situation. Also, avoid ending up in court for lack of debt re-payments. This can have dire consequences for years on your credit score.
Get on top of your debt repayments
Meerkat can help you! Contact us today and let our professionals help you feel more at ease regarding your financial future.