Your credit score is the key to being approved for a range of products. These include; loans, mortgages, overdrafts and credit cards. The higher the score you have, the better chance of being accepted and getting favourable borrowing rates.
That’s why it’s essential to keep an eye on your score. Taking steps to boost it if you feel it is getting too low. There can be many reasons for a dwindling credit score, and many of them can be easily fixed, and you can soon see that number surge again.
Here are three ways you can boost your credit score in 2024:
1. Credit scores are tracked through your Credit Report
It’s worth pointing out that your credit report and credit score are not the same things. However, your score will be broadly reflective of your credit report. That’s why it is always worth checking your report regularly.
Your credit report will be able to flag up any potential problems which might adversely affect your credit score. Your report won’t give you your score, but many credit report agencies now operate a traffic light system. Many different aspects go towards your credit report, such as how you are coping with your current level of borrowing. Also, what percentage of your overall available credit you are using and the number of different credit products you have.
How you are dealing with all these aspects will be ranked green, amber or red. Green meaning you are on top of everything, amber meaning one area might need some attention. Finally red, meaning you need to take immediate action.
By checking your credit report regularly, you will take steps to address any red light issues, helping boost your score.
2. Pay Off Existing Debt Can Help to Boost Your Score
This may be easier said than done, but the more you pay off, the healthier your score will be. Try to concentrate on the credit debt which has the highest interest rates and pay it off first. This means that more of your repayments will pay down the capital rather than the interest.
Try to avoid paying the minimum monthly amount on credit cards. Doing this means the debt itself grows as more interest is added to the remaining capital. In turn, you aren’t bringing down your overall debt.
The more you owe, the greater percentage it is taking up of your overall credit allowance. This can prevent your credit score from increasing.
3. Make Sure Your Details are Correct
One of the most common reasons people are refused credit has nothing to do with their ability to repay. It is because a lender cannot confidently verify their identity. Credit agencies hold personal information such as your name , date of birth and past and present addresses. It is worth check with credit agencies if this information is accurate or outdated. It also helps to ensure that you’re on the electoral roll.
You may also be financially tied to another person. For instance, if you have taken out a joint mortgage or loan in the past. This can affect your credit score, even if you have a relatively healthy credit history.
Is Your Poor Credit Score Stopping You From Banking?
Here at Suits Me®, we believe in financial inclusion. This which means that if your credit score isn’t good, we will be able to provide you with an account.
We offer a whole variety of banking-like features including:
- The ability to set up standing orders and manage direct debits,
- Send money within the UK via a transfer, international transfers are available via a partner in the Suits Me® app,
- Gain access to our exclusive cashback reward programme when you use your Suits Me® debit card with our retail partners.
Opening a Suits Me® account takes minutes and you’ll gain access to your online account immediately so you can start managing your money. We don’t ask for proof of address or run a credit check. We accept 99.8% of all applicants – so if you’re looking for a suitable alternative solution apply today!