6 Ways To Improve Your Credit Score

how to improve your credit score report

Many Australians suffer from a poor credit score, or may have no credit record at all. Banks, other lending institutions and even utility companies will look to your credit score to confirm whether doing business with you is a risk.

Having a less than perfect credit history is not the end of the world, though. Just because your credit score has taken a hit or two, that doesn’t mean it can’t be repaired and improved upon. There are things you can do to make it healthier again and we’ll look at some in this article. 

1. Make Sure You Pay All Your Bills On Time 

Poor credit is a result of not making repayments on time, or consistently being late with paying household bills. If you’ve reneged on a loan or completely missed a payment, this will definitely detract from your credit score. 

You can turn this around, though, by being consistent from now on and making sure everything is paid on or before the due date. It’s not an instant fix, but it will improve your credit score over time. 

2. Consider Consolidating Your Debt 

The more individual debts you have, the more it can adversely affect your credit rating. It can also make it tougher to keep up the repayments. 

One way to ease the burden and also improve your credit score is to consolidate two or more debts, such as multiple loans or credit cards, into one single easy-to-manage Personal Loan. 

Debts Consolidation Loans are designed to help reduce the amount of interest you pay overall, and to make managing your repayments way easier. Debt Consolidation Loans for bad credit will help improve your credit score as it reduces the number of actual debts you have, and this is a positive when you want to apply for finance in the future. 

3. Keep Track Of Your Credit Record 

There are various websites in Australia where you can access your credit records and monitor your credit score. It’s a wise idea to check on this once in a while, just in case you have an outstanding debt or bill that you’d forgotten about. This way you can get that debt paid and cleared so your credit score improves. 

4. Don’t Forget To Update Your Details When You Move Houses 

This tip is more about avoiding damaging your credit score rather than improving it. 

Sometimes when a person changes address they forget to notify the banks and so on, so their residential and postal address is updated with the new one. If you receive bills in the mail, failing to have the correct address could lead to you missing a payment. 

Online is another area where your address details need to be updated. Any site where you have a monthly subscription that is automatically billed to your credit card, the payment may not go through if the billing address is incorrect. 

Before the move, make a list of all the places where you’ll need to change your address. You likely won’t think of them all at once, so this gives you time to remember them all before you move house. 

5. Don’t Apply For Too Many Loans Or Credit Cards 

Let’s say you want to get a Personal Loan or a credit card, but you’re not sure which lender might approve your application. You may be tempted to submit applications with a number of different banks and lenders all at the same time, or in a short space of time. 

Resist this, as too many applications in quick time can affect your credit rating. Lenders will check your credit record and see all these recent applications as well, which may lead to them declining your application for a credit card or a loan. 

6. Talk To Your Lender If You’re Struggling To Make A Repayment 

Instead of just letting it go and not being able to make a scheduled repayment, talk to your lender first, as they may be able to assist you. At least if you make contact and are making an effort, chances are you can work something out so your credit score doesn’t take a dent. 

Credit Conclusion 

There are ways to improve your credit record as well as numerous ways to avoid having it adversely affected in the first place. Strive to make all your bill payments on time and you won’t have a problem.

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