Four Lesser Known Tips To Improve Your Credit Score Personal Finances | Finance
Even with the financial constraints of the COVID-19 pandemic, now is the time to get your finances in order. But having a bad credit score can affect your ability to do a lot of key things in life – so how can you improve your credit score?
Why is my credit rating important?
Strengthening your credit score is important because it indicates how a typical lender would perceive you – this is a record of the responsibility with which you have managed your finances.
Your score is a three-digit number between 0 and 999, and is calculated based on your financial history.
It is very important to have a good credit rating for things like mortgages, loans, and credit cards.
Space credit requests
Pete Mugleston, MD and silver expert at advisormoneyenligne.fr Recount Express.co.uk: “Applying for credit several times in a short period of time can seriously damage your score, leading lenders to believe that you are desperate for credit and therefore a risk.
“So that reduces the chances of being accepted for credit and, in turn, lowers your credit score.
“The best method is to request one product at a time using the online eligibility tools to see which offer you are most likely to be accepted for.
“If you then need to apply again, try waiting a few months.”
Get rid of unused credit cards
While you might think you might need them in the future, holding onto your credit cards could actually negatively impact your credit score if you don’t use them.
The Mortgage Advice Bureau advises, “Holding credit cards that you no longer use not only threatens fraud, but can also be misleading about the amount of available credit you have, so be sure to cancel.” any accounts you are not using and cut the card before you throw it away.
Make sure you don’t have too many accounts, warned
Tom Martin, Money Expert at the Chip Savings App.
He said, “If you have lots of old credit cards, or if you have credit accounts that you forgot, give them up.
“Having a lot of unused credit both makes you look like a potential fraudster and can scare off new lenders (who will ask ‘why do they need more credit? They already have a lot!’). “
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Make sure you don’t have too many accounts
Paul Stringer, director of the Norton Finance Group, said having too many bank accounts, especially credit accounts, can have a negative effect on your score.
“While opening new credit accounts can have a positive impact on your credit score, too many can be viewed as negative by lenders, especially if they are payday loans.
“Keeping up to date with payments on new accounts will prove to lenders that you are creditworthy. “
Correct errors in your report
Justin Basini, CEO and co-founder of ClearScore, advises, “Your credit score is based on the information in your credit report.
“If this information is not correct (for example, an account showing as ‘open’ when it is ‘closed’) then your credit score will not be either.
“It could mean your score is lower than it should be.
“By regularly checking your credit report, you can spot (and correct) any mistakes, which can help boost your credit score.”