Do you know your credit score? OR Is your credit rating a little lower than you’d like?
Getting rejected for credit and loans can be disheartening, so here are some tips for improving your credit rating.
5 Tips that can help improve your credit score?
- Not applying for any new loans
Applying for a new credit product or loan will show up on your credit report, which in turn may affect your credit score, whether you end up being approved or not. Even with an explanation to a lender this may still impact their view.
That being said, this is for additional credit – in fact it may improve your credit score if applying for a credit product which will replace one of your current credit products, such as a balance transfer on a new credit card- possibly zero interest – however if you do this please ensure you cut up and close the existing card and be fully aware of conditions as often the zero interest rate is only on balance transferred not new purchases.
- Paying off any outstanding loans and debts
Furthering the point above, you’ll be much better-situated to improve your credit score if you’re not having to stress over existing loans and debts. So pay off any loans you can. They will also appear as a feature of your credit report until you’ve paid them off – they may even remain there after you’ve paid them off depending on how large they were and how long it took you to pay them off.
- Paying bills on time
This may seem obvious, but it is the most important – pay all of your bills on or before the due date. A record of consistent and punctual payments will help considerably towards getting a good credit rating.
This is especially important if the bill is for $150 or more, as a missed payment of that size can be recorded as a default on your credit report if it’s 60 days overdue.
Defaults are one of the more significant black marks that can show up on a credit report. There are companies who can help if you feel a default should not be on your file – Talk to us.
- Keep your credit card balance low
A consistently low credit card balance is much better for your credit score than a higher one.
A bad credit score can seem like a deep hole to dig yourself out of, but the good news is that it’s not impossible to recover from a lower-than-you’d-like credit score. However, it will definitely require some discipline and work on your part.
If you don’t know your credit score or have been having trouble obtaining finance – call us 0468 371 449 for an obligation free discussion