Debt Management and Your Credit Score

How to Build Your Credit Score as Fast as Possible

Is your credit score preventing you from gaining access to a credit account? Find out how to build your credit score as fast as possible

Couple happy because they've been able to build their credit score quickly to open a new account

If you’re like most people, you don’t really give your credit score much thought until it comes time to apply for a mortgage, personal loan, credit card or bank account. That’s when you realise just how important it is to have a good credit score. So, before we discuss the easiest methods on how to build your credit score as fast as possible, it’s important to understand what your credit score is and why it’s important to keep track of.

So, What is a Credit Score?

A credit score is basically a representation of how safe you are deemed to give credit to. As an example, if you’ve always paid your bills, loan payments rent and credit card payments on time, you most likely have a good credit score, and you shouldn’t have any problems applying for any type of credit. However, if you’ve consistently made late payments or even missed a few, you’ll have a lower score that shows you are a bit of a risk. This often leads to many credit applications being rejected.

If you’ve had a bad run that has resulted in your credit score taking a bit of a beating, you can take steps to improve your score. To build your credit score in the shortest possible time, all you need to do is follow a few simple steps.

Pay Your Bills on Time

The first indication that you are striving for a better credit score is to pay your bills on time. This generally includes your rent, utilities and other services for which you receive a bill each month. Whenever possible, pay these bills as soon as you receive your wages and get them out of the way. Many people often wait until the due date and then find they’ve spent more than they should have and then don’t have enough money to pay all their bills in full. It then makes it extremely difficult to catch up and before you know it, the bills for next month have arrived.

Keep Your Credit Card Balance Low

If you do have a credit card, try not to max it out every month. Pay down as much of the balance as you can and avoid using your credit card again unless it’s an emergency. Not only will this work at improving your credit score, but you’ll also clear your credit card debt faster which is one less debt for you to worry about.

Get a Prepaid Card to Prevent Overspending and Debt

If you struggle with maintaining credit card balances, get a prepaid card instead. You can still do everything you need with a prepaid card, such as pay for shipping or fuel, shop online and pay your bills, but you can only spend what is deposited in your account. Once the money is gone, you can’t spend anymore but you can’t overdraw the card either.

Here at Suits Me, our prepaid debit cards are a perfect way to keep on track and improve your credit score. We don’t offer a credit facility, so you’ll never go overdrawn or get into debt. You can also set up direct debits and standing orders to ensure your bills are paid on time and to avoid any late fees or the marks on your credit file. You can apply for a Suits Me account in less than 10 minutes, with no credit checks, and you’ll be able to start managing your finances immediately!

Close Accounts You Don’t Use

If you have more than one bank account, you are also most likely paying account keeping fees on all of them. What’s worse, these fees come out every month automatically and if you don’t keep an eye on these accounts, the fees can send you into an overdraft. If you aren’t using one or more of your bank accounts, close them. You don’t need the fees or the headache that comes with them

Keep in mind that building a better credit score can take time, especially if your spending habits and lack of financial responsibility got you there in the first place. Be realistic and understand that it can take time for Credit Reference Agencies to update your data. Play our cards right and you will build your credit score again in no time.

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