Your Credit Score tells a potential Bank or Lender what kind of borrower you are, so it is imperative, if you have a low Credit Score you look to increase it as best you can and here are some ways you can do that;
Who looks at a credit score?
Anytime you apply for credit, the bank or lender will look at what your Credit Score is to ascertain if you are the type of client they would like to lend money to. They can also use your Credit Score to determin what interest rate they will apply to your loan, the higher the risk, the higher the interest rate.
The other person who should be looking at your Credit Score is you, you should know what score you have and if need be, put things in place to increase it so Lenders are wanting to offer you business.
How does the score work?
Your Credit Score will range from 0 through to 1200 (some Credit agencies go up to 1000) as a guide the range is broken up into;
0-240 = Below average
240-480 = Average
480-720 = Good
720-960 = Very Good
960-1200 = Excellent
How do I know my Credit Score?
There are some free, online Credit Score companies which, if you enter your details they will send you your Credit Score, some of these include;
- Creditsavvy (Experian rating)
- Credit Simple (Dun and Bradstreet score)
- Finder (Equifax score)
- Getcreditscore (Equifax score)
Please remember to read the Terms and Conditions when requesting your Credit Score so you can protect your personal information
How can I increase my score?
- Make your loan payments on time every time
- Pay your bills on time every time
- Avoid multiple credit inquiries
- Lower unnecessary credit limits
- Consolidate your debts
- Pay your credit card in full each month
- Pay your rent on time every time
- Avoid overdrawing your account
Need more help?
If you are trying to increase your credit score I would firstly suggest consolidating your debts into one easy payment and putting a budget in place so you have the money aside for bills etc. for more information or to look at consolidating your debts contact me.