Are you overwhelmed by the feeling like your credit history is a mess? There are ways that you can get back into lenders’ good books. Wanna know how to increase your credit score? Here are 6 ways to improve your credit score.
1. Check-Out your Credit File to See Where you Stand
If you want to increase your credit score, it is important to check out your credit file to see where you stand. Out of all the many credit reporting bodies available that you can approach to get your credit file in Australia. CheckYourCredit, Equifax, Illion, and Experian are only some of the major ones you can check, and where you can request a free copy of your credit report more frequently and/or every 12 months in Australia. This is an important step as this will tell you which areas need to be addressed.
2. Make Sure There Aren’t Any Errors
After having the copy of the credit report, it is a must to thoroughly review it to make sure there are no major errors or listings on the report. This checking practice then will give you the assurance that your money is free from eros, and secured, and will help to prevent you from identity fraud, such as a fraudster taking out several credit cards under your name.
3. Pay your Bills On-time
Regardless, it is a good attitude and a must to pay bills on time. Regularly practicing this behavior will not only help you stay at peace with pending bills but also make the lenders aware and be impressed that you are responsible with your funds even if you have made missteps previously.
4. Have a Credit Card
To ensure you are even more creditworthy, it is a good idea to make measured credit card use as this will benefit you to make your payments regularly and on time. Doing so will serve as evidence that you are more than capable of managing debt. Also, to properly utilize your credit card in good use, it is a must to only buy things that are a ‘need’ rather than a ‘want’ and ones that you know you can repay immediately.
5. Pay Off Any Outstanding Debts
Having pending bills could damage your credit score, that’s why paying any unpaid bills or debts as fast as possible should be the top priority.
6. Minimize New Credit Applications
To increase your credit score, it is advisable to refrain from making multiple credit applications. Applying for multiple credit applications can accumulate hard inquiries, where lenders request to review your credit history before lending you money. Such applications occurring over a short period of time can put your credit score at risk.
