The truth is, your credit rating can have a big impact on your ability to borrow money, whether you’re applying for a credit card, a loan or even a mortgage. So, if your score isn’t looking too healthy and you’d like to give it a nudge in the right direction, keep reading. In this blog, you’ll find five tips that can help improve your credit rating and get your finances back on track.
1. Consolidate your debt
If a lender sees that you have debt in multiple accounts with different companies, they might feel inclined to refuse you any additional funds. Having your debt spread across lenders could make you come across as an irresponsible borrower and lower your credit score, so if you want to improve your situation, you could sign up for a debt consolidation loan.
This type of loan enables you to combine all of your debts into one, meaning you only have one payment to make each month. Reorganising your finances like this can take away a lot of the hassle involved in juggling accounts with various different lenders, as well as improve your credit rating and heighten your chances of being able to borrow money in the future. If you’re keen to get your debts under control sooner rather than later, there is help at hand. For example, specialist website https://www.chillmoney.ie/ can assess your application within minutes and provide you with a manageable repayment plan the very same day.
2. Don’t apply for any more credit
Applying for lots of credit can suggest that you’re heavily reliant on borrowed money in addition to your income, which in turn can have a negative impact on your credit score. So, to keep your finances under control, you should refrain from applying for any more credit. Resisting the temptation to sign up for additional funds could help significantly boost your rating, and it should put you in a better position to sort out any problems on your credit file.
If you have to sign up for credit, space out your applications, aiming for no more than one in a three-month period.
3. Try to make your repayments on time
Showing that you’re in control when it comes to your finances can help improve your credit rating. By making your repayments on time, you can prove that you’re a sensible borrower, especially if you can pay off your accounts early.
4. Consider closing unused accounts
If you have unused credit accounts that you no longer need, consider closing them. Lenders take into account all the credit that’s available to you, not just what you already owe. So, if you’ve got a couple of accounts here and there that you don’t use anymore, it could help to close them down completely. By having fewer, long-standing and well-managed accounts, you should find you have a much healthier credit rating.
5. Get on the electoral register
Did you know that being on the electoral register can help improve your credit score? If your name isn’t on there, you could find that you struggle to get the credit you need. Aside from assisting with their identity verification checks, being registered shows lenders that you’re settled. As result, they’ll be much more inclined to lend you funds.
Keeping your financial situation under control can be tricky, but by taking these tips into consideration, you should be able to improve your credit score.
