WITH 6 MONTHS LEFT OF 2023, HERE ARE 6 TIPS ON HOW TO IMPROVE YOUR CREDIT SCORE!

With just six months left in 2023, it's time to take a closer look at your Credit Score. Your Credit Score plays a crucial role in determining your ability to access loans, credit cards, and other forms of credit.

A good Credit Score can open doors to better interest rates and loan terms, while a poor Credit Score can make it difficult to get approved for credit.

Here are six tips to help you improve your Credit Score before 2023 ends:

1. Check Your Credit Report

The first step to improving your Credit Score is to know where you stand. You can get a FREE credit report from Kudough which will give you an overview of your credit history from one Credit Bureau. We recommend upgrading to get a side-by-side view from all four Credit Bureaus to gain true insight to your factors influencing your Credit Score, which will include a detailed breakdown of your credit history, accounts, enquiries and if there are any defaults, arrears or judgments.

1. Pay Your Bills on Time

One of the most important factors that impact your Credit Score is your payment history. Late payments or missed payments can significantly lower your Credit Score. Make sure to pay all your bills on time, including credit card payments, utility bills, and loan payments. If you are struggling your monthly debt repayments you could view how much you could be saving with our debt consolidation partner, you can view you monthly debt savings value online without any obligation.

Your debt utilization is the amount of credit you are using compared to the amount available. High debt utilization can negatively impact your Credit Score by displaying you rely too much on credit every month. To improve your Credit Score, try to not utilize more than 60% of your available credit.

3. Have a good mix of credit

To improve your credit score, it's essential to have a good mix of credit or credit mix. This means diversifying the types of credit in your history, such as credit cards, loans, and home loans. A balanced credit mix demonstrates to lenders that you can handle different types of credit responsibly. Evaluate your current credit mix and consider adding another type of credit if needed. Use different types of credit responsibly, making timely payments and managing them well. However, be cautious about opening unnecessary accounts and only do so when necessary. Monitor your Debt utilization and aim to keep it below 60%. By maintaining a healthy credit mix, you can improve your credit score and showcase your ability to handle various financial obligations.

1. Limit Your Credit Applications

Each time you apply for credit (hard enquiry), it generates an enquiry on your credit report. Enquiries will remain on your credit report for 12 months. To improve your Credit Score, limit your credit applications and only apply for credit when you need it. Remember checking your Credit Report is not a hard enquiry and will not impact your Credit Score.

1. Ensure details Are Correct

Finally, regularly reviewing your Credit Report can help you identify any errors or inaccuracies that may be negatively impacting your Credit Score. You can dispute any errors or inaccuracies with the relevant Credit Bureaus to have them corrected to impact your Credit Score no longer negatively.

Improving your Credit Score takes time and effort, but by implementing these six tips, you can start making progress in the remaining six months of 2023.

As we enter tough times we recommend our customers be mindful of their spending habits and try to find ways to cut back unnecessary expenses to start taking control of their finances and achieve their financial goals set for 2023.

 

BACK TO SUB CATEGORY LIST