Credit scores matter when it comes to your household finances. Without a good credit score, it can often affect your chances of applying for loans, moving house, or buying a high-value commodity like a car. There are plenty of ways to help improve your credit score as a household if it’s looking on the negative side. So here are some tips that will help.
Consolidate Your Debt
We all have a different amount of debt, and that debt might vary from one overdraft to a variety of credit cards. The more debt you have spread out, the more difficult it becomes to keep track of it. Not only that, but you start to generate more charges if you don’t end up buying the debt off within a reasonable amount of time.
To make this whole process a little easier, you may be able to consolidate your debts in one place. Buddy loans are an example of a direct guarantor loan lender, and whatever debts you may have that exist, transferring it all to one source of debt and repayment could be more beneficial.
Provide Proof Of Address
A proof of address seems like a bit of a weird one to suggest when it comes to your credit score, but for those unaware, it actually can have a positive impact.
By registering to vote and adding yourself to the electoral register, it will give you a boost to your score that you will likely find helpful. Even if you’re studying, in between countries or living at your parents, register and keep it updated as and when you move. Whenever you apply for any loans or finance options, they usually run a credit check and want to see evidence of where you’ve lived over the past three years. So it’s important to have that information to hand as and when you might need it.
Keep Your Available Credit Low
Keeping the amount of money you can borrow at a low level is important. No one wants to be borrowing thousands of pounds if they don’t have the ability to pay it back, so it’s good to be wary of how much of a credit limit you are setting yourself. Think about how much you make as a household each month and aim for your credit limit to not go beyond that. That’s because if you did have an issue that needed a big expenditure, you’d hope you could pay it back with your wages in one go. Make sure that your credit limit is always reflecting your income and change it whenever it requires it.
Pay Off Your Debts Regularly
Paying off a debt regularly is vitally important, and if you leave it for any longer than usual or miss payments you’ll see interest and charges being added onto debts you already have. So even though you might be paying debt off, you want to ensure that you’re meeting at least the minimum that the loan company or lender requires. The last thing you want to happen is getting charged extra and potentially damaging your credit score.
Find ways that will help you pay off your debt sooner and with as little extra charges as possible. You can set alerts or reminders on your phone or on your calendar so that you don’t forget.
Keep An Eye Out For Fraudulent Activity
It doesn’t happen often, but if you should fall victim to fraud, then you could see a terrible impact on your credit score. That’s something that you don’t want happening, in case you’re in the middle of buying a house or taking out a loan. Be very careful with your login details and make sure to change these as often as you can. Add extra security measures where it’s possible and always do a monthly or weekly check of your credit and debit accounts. This is because there might be times where this fraudulent activity can go unnoticed, especially as your household grows, and you may have more expenses to deal with.
Improving your credit score is necessary to do at all times because you never know when you might have to move or apply for a loan. Use these tips to help improve your credit score and to help keep it in the green zone, rather than it being something that impacts on your life and what you can do with it.