Your credit score can have a huge bearing on so many different aspects of your life. From financial security to employment, keeping on top of your credit will open more opportunities that otherwise might not have been available to you.
A bad credit score can take months or even years to put right. Even once you’ve instilled more healthy financial habits to promote a better score, the impact of these behaviours may not be felt for a long time. However, there are several things you can do to boost your credit score in the short-term and start working towards a more prosperous financial future.
Find and dispute errors on your report
Errors on your credit report have the potential to affect your overall score and creditworthiness. Examples of common mistakes include instances of mistaken identity (incorrect phone number, address etc), a closed account still showing as open, and incorrect credit limits or account balances. Inaccuracies of this kind are more common than you might think; in fact, more than a fifth of Americans have some kind of error on their credit report.
Regularly checking your file for these simple mistakes is an effective way to boost your score. Not to mention, it’s also one of the best ways to monitor and guard against any cases of fraud and other financial crimes, so it’s certainly a good habit to get into. If you do notice an error on your report, make sure you get in touch with the relevant credit bureau who will be able to investigate it further.
Start paying off debts with savings
If you’ve been reluctant to pay off credit card debts with savings you’ve worked so hard to build, now might be the time to break this habit. Saving money is a great way to leave yourself in a healthier financial position in the long run, and you may be thinking that this advice contradicts that. In this situation, it’s a simple case of mathematics.
If your debt is costing you more in interest over a year than you’d make by adding the same amount to your savings account, you’ll be better off spending your money servicing the debt. This won’t be true in every circumstance, so it’s important to carefully assess your own financial situation and make decisions that work for you.
Register on the electoral roll
Something you might not have considered before is the benefit of signing up to the electoral roll. Although it won’t drastically see your score skyrocket, every little helps when you’re working to become more creditworthy in the eyes of lenders. You may be wondering why the electoral roll and credit ratings are linked in the first place. It all comes down to fraud prevention, and being part of the electoral register makes it easier for prospective lenders to confirm your identity, which increases your score as a result.
Small changes can make a big difference
In this guide, we’ve explored three quick wins everyone can do to start rebuilding their credit score. Even if you already have a healthy score, any little action that can elevate it further is worthy of your time. Keep these things in mind, and you may be surprised to see how such simple tasks can drastically boost your financial wellbeing.
