Apart from keeping on top of your bills and repayments, there are some lesser known ways to give your score an upgrade.
And let’s be honest, we all love a good personal finance hack.
💳 Keep a credit card (yes, you read that right)
This one might sound a bit counter-intuitive, but hear us out.
Having a credit card (even multiple cards) can be a good thing for your credit score as long as you keep on top of your repayments and keep your account balance in check.
Why? Because it helps you demonstrate that you can be a reliable borrower. Just don’t max it out.
🙅♀️ If you can fight the urge to spend more, consider keeping a higher credit limit
Ever thought that reducing your credit limit on cards would be a good move for your credit score? Well, it’s actually more likely to hurt your score than to improve it.
This is because your credit score takes into account your credit utilisation ratio, which is your balance divided by your limit.
Assuming your account balance would be the same, this ratio will be lower if you have a higher limit, which is a good thing for your score.
🧐 Check your credit report for errors (and dispute them!)
Credit reporting bodies have to give you access to your credit report for free once every 3 months.
If your credit score is lower than you expected (or if you just want to make sure it’s right), request your credit report and check that everything is correct.
Your MONEYME Credit Score is based on data from Experian, one of the three main credit reporting agencies in Australia.