We should all make an effort to improve and maintain our credit rating. It does not matter how much money you have got in the bank, your credit rating is pivotal if you are to secure mortgages and other financial products. If there is currently room for improvement with regards to your credit rating, read on to discover five things you can do today to boost your score.
- Put together a debt repayment plan – You are never going to be able to achieve an excellent score if you do not start paying off some of your debts. This is why you need to begin by putting a debt repayment plan together. This does not need to be complicated. Simply look at the money you have going out and coming in every month. You can then see how much money you have available per month to pay off your debts. Start by paying off the most expensive debt and then work your way down. However, make sure you pay the minimum payment on all cards each month.
- Don’t make any more credit applications – Every credit application you make will show on your account, so you need to avoid making any unless they are completely necessary.
- Don’t close any of your accounts – Once you have paid off a debt, this does not mean that you should close the account. While this may seem logical, it can actually hurt your rating because it means that you are going to be using a large percentage of your available credit. Keeping your account open would show that you have credit available to you but you do not need to use it, and this enhances your score.
- Increase your credit limit on your accounts – If possible, you should see if you can increase the credit limit on any of your existing accounts. Again, this is a good way to show that you have credit available to you but you’re not using it.
- Get some assistance – Last but not least, if you are still struggling to improve your credit rating, the best thing to do is get some assistance. There are plenty of companies out there that can assist you. In fact, it could be that there is a mistake on your credit report, and this is where a TransUnion dispute will come in useful. After all, if you do not think your credit score is right, you should certainly challenge it.
So there you have it: five steps that you can follow to improve your credit rating. If you follow the advice that has been presented above, you should notice that your score will increase. Some of the suggestions mentioned will take a bit of time to have an impact, whereas others can boost your score positively over the coming weeks.