A recent survey conducted by the National Foundation for Credit Counselling revealed that a lot of people would be quite uncomfortable to admit the fact that their credit scores way more than their weight. As much as crash diets might not work at all times and can be unwholesome, it is feasible for one to change their credit score quite quickly.
However, just like in the quest to lose weight, “Quickly” is a very relative word here. Liz Weston, author of “Your Credit Score” and personal finance columnist explains, for one to realise any improvement, it could take anything from 30-60 days.
However, it is important to note that nothing will change until you get up and make a deliberate effort towards causing the desired change. The very first stop you might want to make is at Clearscore where you can easily access your credit score, as well as report, free of charge. You can then go ahead and apply the following tips to enhance your credit score.
- Always dispute errors – Mistakes will always happen. There are several platforms through which you can dispute errors online in order to fix any foul-ups. A good starting point for you could be looking through helpful advice on the Money Advice Service, and deciding if this is something you decide to go ahead with.
- Bargain -It wouldn’t be possible for you to deny that you ceased paying a credit card bill when you were out of employment some time back. However, you can request creditors “to write off” the debt or whatever accounts that might have gone to collection It is advisable to have your current creditor pledge —in writing—to remove the account or report it as “Paid as agreed,” before you go ahead to make any payments.
- Get good-will adjustment -You can also possibly request for a “good-will adjustment.” This is especially so when you were a good customer until the time when you got out of a job, and were forced to make one or two late payments. Lay some emphasis on your previous impeccable history, in your letter to the credit card company, requesting for the adjustment in the credit report.
- Check out your limits – Whenever you access your free credit score as well as report,it is imperative to ensure that your reported credit limits stay current as opposed to appearing lower than they actually should be. If there the card issuer forgot to point out the actual new credit limit, make a request for that to be done.
- Get yourself a credit card – Having one or two real pieces of plastic credit cards improves your score; but that is if you avoid charging too much and you ensure that your bills are paid on time. This simply means that you use your credit responsibly.
- Avoid over-using your credit cards-Getting yourself a credit card doesn’t mean that you whip out the piece of plastic anytime you purchase anything! Ensure that your credit utilisation ratio doesn’t exceed 30% or if possible even less.
It is imperative to always maintain a good credit score as it shows any other potential lenders that you are responsible with your finances, and there is every possibility that you will pay on time. Without a good credit score, your ability to secure loans or credit cards in future is significantly limited.