How to improve your credit score

Your credit score can be quite confusing. It can go up and down and it’s not always clear why. But having a good credit score can impact on the type of credit you have access to, including big things like mortgages and car loans, but also things like telephone contracts. Here’s a few suggestions that can help increase your credit score, or if your score is already good, keep it that way.

  • Make sure it’s on time

Always make sure you make your payments on time, and if possible pay off your balance in full every month. You should always make sure that you pay in at least the minimum amount for the month, otherwise it could end up costing you a lot more in the long term. Making the payments on time is viewed more positively by lenders.

  • Clear small balances

If you have a few credit cards with small balances it’s a good idea to clear them back to zero. Having lots of small debts over multiple accounts can negatively affect your credit score as the amount of credit accounts you have is used to evaluate if/what credit you can get in the future.

  • Clear anything past-due

It’s really important to pay off anything that is past-due as soon as possible. You may think that you’ve missed your chance, and you are right that it won’t necessarily boost your credit score significantly, however new lenders will want to see that you paid back what you owed.

  • Clear your highest interest debt first

Always try to clear your highest interest debt first, as this will be costing you the most in the long run. Getting rid of this debt will be great all round as you won’t be tied into expensive interest payments and you will eventually free up cash to pay off over debts.

You can always manage your money with a Monese current account. It’s easy to stay on top of your spending and you can transfer money to another account easily. All you need to do it download our app here to begin.

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