Does your credit score feel like a mystery number, guided by an unseen hand? It’s not! Nearly everything you do, when it comes to borrowing and repaying money, can affect it. Here’s how to send your credit score soaring—or plummeting.
☝️ How to send your credit score to the moon
The higher your credit score, the better you look—in a lender’s eyes.
One simple way to boost it is by making repayments on time, all the time. The same goes for utility bills. This signals to the credit gods that you’re unfailingly reliable.
Once you’ve mastered repayments, focus on paying off your biggest debts. For credit cards, start with the ones that you’re paying the most interest on, as well as those that are about to hit their limits—and work to reduce your balance. This will improve what is called your credit utilisation ratio, which in turn can boost your score.
Next up, request your credit file and examine it carefully. Credit reporters and credit bureaus are only human, and they make mistakes, too. If you spot any errors, get them fixed asap.
👇🏽 How to bring your credit score down, down, down
Just as making timely repayments will boost your score, late repayments will send it in the opposite direction—especially when lateness becomes a bad habit.
Another thing that can harm your credit score is applying for credit from multiple sources in a short period of time, especially short term credit. This tends to create the impression you’re desperate..
Also, avoid drastic events, such as bankruptcy, defaults and legal actions. Depending on how many there are, how long ago they occurred, and how much money is involved, these black marks on your credit file can give your credit score a nasty hit.
⏰ Time for a change?
Now that you have the lowdown on how to sort your credit score, what are you waiting for? Take your first step today and move a little bit closer to achieving your financial dreams.Credit scores are provided by Price Enquiry Pty Limited ACN.