There are a number of things you can do to raise your credit score but it may take some time and effort:
- Pay all of your bills on time: Late payments can have a significant negative effect on your credit score so be sure to do so.
- Maintain a low credit card balance: Maintaining a high credit card load can also negatively affect your credit score so try to keep it at or below 30% of your credit limit.
- Don’t close old credit accounts: Keeping old credit accounts active can help you raise your credit score because the duration of your credit history influences a component of your score.
- Challenge any problems on your credit report: If you discover any mistakes on your credit report contact the credit agency and raise the issue.
- Don’t apply for too much credit: Every time you do your credit report may receive a “hard inquiry” which can harm your credit score.
- Take into account a secured credit card: A secured credit card which is intended for people who are attempting to repair their credit demands a cash deposit.
- Obtain a credit-building loan: Loans for a small sum of money typically a few hundred dollars that help you construct a good credit history are known as credit-builder loans.
- Speak with a financial expert: A financial advisor can assist you in understanding your credit report provide you with individualised guidance and assist you in developing a financial strategy that will help you raise your credit score.
It’s important to note that raising your credit score takes time, results may not be noticeable for several months or even several years. Additionally bear in mind that crucial behaviours to uphold once you’ve improved your credit rating are paying your bills on time and keeping your credit card balances low.
