How to improve your credit score

If you’re after ways to improve your credit score, look no further. Once your credit score has become low, it can be hard to find ways to bring it back up. Generally, paying your existing loans and bills on time may help to improve your credit score, as should only applying for credit when necessary. By regularly paying off your debt, you may also see your credit score improve.

Read on below to find out more about how to improve your credit score.

How to improve your credit score

If your credit score is not where you want it to be, you’re not alone. Improving your credit score may take some time to do, but the sooner you make some changes to your financial habits, the faster your credit score will go up. There are several ways that you can improve your credit score. Some of those ways could include:

Pay existing loans and debts on time – Having a record of consistent payments can help to improve your credit score over time. If you have bad credit but you have a loan, making your repayments consistently and on time can improve your credit score with every repayment made. Loans can be used as a tool to increase your credit score as long as you are consistent with paying them off.

Pay your bills on time – Paying your phone and utility bills on time can also help to improve your credit score. If you have a bill that is more than $150, and is at least 60 days overdue, then a default could be listed on your credit report. A default will stay on your report for five years, and can directly affect your credit score.

Apply for new credit only when needed – Applying for too many forms of credit in a short space of time can harm your credit score by creating too many hard inquiries. Too many hard inquiries can negatively impact your credit score, though this effect may get better over time. Hard inquiries may remain on your credit report for two years.

Demonstrate bill-paying reliability – Although your credit report may not include information about your general payment of utility bills, it’s important to pay them on time. If you don’t make these payments on time, your credit provider may refer your debt to a debt collector, or report your debt to a credit reporting agency. This could then lead to a default being listed on your credit file, which lenders can see when you apply for credit.

Ensure your credit file is accurate – It’s possible that your credit file could have errors listed on it, so it’s important to make sure everything listed is accurate. If there’s a mistake on your report, you may need to contact your lender and the credit reporting agency that listed the error.

Regularly pay off debt – Debt does not have to be a bad thing, as long as you’re in control of it. Proving that you regularly pay off your debt shows lenders that you are capable of managing your funds. If you can make at least the minimum repayments due on any personal loans or credit cards by the due date each month, lenders will see that you are a reliable borrower. However, paying off more than the minimum amount every month may improve your credit score.

How we can help

Tiger Finance can help you to find out your credit score. Try our credit score calculator today to find out your numbers.

If you’re looking for a loan to help you improve your credit rating, we can help to get you funded in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. Call to speak to one of our loan specialists today for your free consultation.