How To Go From a Bad Credit Score To a Good One
It seems like throughout our lives we are judged on something. In school it is our grades, and then in adult life it can be our credit scores. I mean, how many of us are going to be able to own a home or even a smartphone with having our credit score checked? So like it or not, it is something that we need to keep an eye on. But what happens if our score isn’t as great as we would have hoped? The good news is that like studying for an exam, there are things that you can do to improve your grade, or in this case, your score.
Here are some things you should be doing:
Make All Payments
What happens to get your credit rating down is when you are showing that you can’t repay money that you have borrowed. So if you have missed some credit card or loan payments, then taking charge and making sure that you don’t miss any more is really important. Set up a direct debit or mark it in your calendar. Some may have been forgotten in the past, but that isn’t an excuse you can make if you want to improve your credit score.
Check Your Score
Checking your score is one of the things that you should be doing right at the start too. You need to know what you’re dealing with after all. So use a site like experian.co.uk to see what exactly your score is and why your score has been calculated like that. Going over your score is really important as if there are any mistakes in the history of it all, it can make a big difference. If it says you have a credit card that you don’t actually have, then you need to get it corrected. So check your score and then go over your score.
Open New Credit If You Have To
You may have known for a while that you had a bad rating and done all that you can to improve it and clear your debts. But if you’ve closed your credit card accounts after they’ve been cleared then how can you demonstrate that you can now pay things off better and build up your score? So in some cases, getting a new line of credit can be a good idea. In these cases, something like a small guarantor loan could be a good idea, using a site like guarantor.loan for example. When a guarantor is going to help make the payments if you can’t, it means you’re more likely to be loaned the money.
Make a Budget
If you want to clear your debt and build your credit score, then staying on top of your money and knowing precisely what you have incoming and outgoing is really important. So set yourself a budget and it will make a big difference. Decide what can be paid off each month and stick to it. The important thing is to not bury your head in the sand; stay on your finances and your score will improve with time.