When working to better your credit score, it is important, to begin with, the fundamentals and work to make sure that you’re in a position to better your chances of being accepted for alternative finances in the future. To help you out, we will be providing you with our 5 top tips on how to solve the issue of a poor credit score in 2020.
Start By Checking Your Credit Score
When looking to build up your poor credit score it is important to look at the current state of your line of credit. By understanding the difference in score and the ranking that this gives your line of credit, you are then able to fully understand how to better this in the long term. To help you out, we will be providing you with an outline of the Vantage Score 3.0 Range that is used by the 3 main credit bureaus in the UK.
By determining where you fit within this scale, you can begin putting steps in place to better your credit score without further negatively affecting this.
Pay Off your Debt Where You Can
One of the ways that you can better your credit score is to pay off your debt on time. Whether it is an outstanding payday loan that needs paying off or it is a debt from many years ago, beginning to pay this will better your finances and provide you with a strong foundation to then strengthen your credit score at this time and better your line of credit for the future.
Avoid Applying For Any More Loans
Throughout the stages of bettering your credit score, it is important to not apply for any more loans during this time. Each hard enquiry that is made into your credit score can last for 2 years and can see be damaging to your line of credit. These types of enquires take place when a lender looks at your credit score when applying for a loan and can be seen by other lenders, therefore, it is important to limit these as much as possible.
Look For Incorrect Information
During this stage, it is also important to look at your personal information and make sure that there is no information that is incorrect. If the smallest detail such as the name or the address, this can have a profound effect on your credit score. Should you find any information that needs to be corrected, it is important to make sure that this is corrected as soon as possible. This will then enable you to get your line of credit as strong as possible in the future.
Build Your Line Of Credit
To help you build your credit, we will be providing you with a short sharp list of ways that you can begin to positively build your credit in the future:
Open A Bank Account – Opening a bank account and having a solid income can aid you in building a credit score. This will aid you in applying for alternative finance in the future.
Set Up Some Direct Debits – when you have a bank account set up, you can then strengthen it with the direct debits. This shows that you are responsible for your money and can be trusted when it comes to applying for alternative finance in the future.
Though there are several ways that you can strengthen your credit score and begin to solve the issue of your credit score at this time. Where will you be starting when bettering your credit score.