As a credit repair specialist our passion is helping as many people as we can, to improve your credit rating and creating a clear credit history, allowing you to live a life of freedom…
This week, we sat down and thought about our top 5 strategies to improve your credit rating. Improving your credit rating is something that anyone can do, but it does take time. So having a little patience, we encourage you to try these five super simple strategies:
#1: Pay your bills on TIME
How can it get any simpler than this?
The objective here is by paying attention to ALL of your bills, not just the phone or internet bill that keeps you connected to your social media addiction.
If you do this with care, then everything else you build on top of it, will get you closer to a great credit rating and improve your credit rating.
If you have any issue with remembering to pay your bills on time, then do yourself a favour and set up automatic payments.
That way, you know with ease that your bills are being paid.
Alternatively you can also set up reminders, however you will find that you have less stress and more time with automatic payments and you will be surprised by how much you have paid by the time you actually do check your account.
#2: Check your credit reports for errors
Something you have possibly heard before and if you haven’t, this could be a very positive step for you to follow to improve your credit rating!
If you happen to find a credit report error that is significant enough to lower your score, then this is like winning the lottery.
Of course, ALL errors should be fixed, but if you have one that is affecting your score, then you might get a boost and improve your credit rating shortly once the error is removed.
You are entitled to a free credit report from each credit bureau every 12 months. If you need guidance on how you can obtain these, or if you need assistance with the removal, then please don’t hesitate to send a contact form to us today and we can walk you through the process.
#3: Know your current bill status
Are you aware of what bills you have and when they are due?
Many people find themselves in a stressful situation when all of a sudden they have an unexpected bill. They have instead spent the money to pay for the bill, on shoes, video games or other leisure items.
Does this sound like you and your need to improve your credit rating?
Be organised, set yourself a monthly budget and create yourself a financial planner where you are recording your daily and weekly spending’s.
This can be something as simple as an excel spreadsheet and can help you to know what you need to put aside for bills and how much you have left over to spend on the more enjoyable things.
#4: Keep low balances on credit cards
Although we appreciate that credit cards are a valuable tool to assisting you in keeping up with those life essentials and whilst it’s an exciting time spending the money, it can be less exciting when you don’t keep up with your repayments.
Pay your credit card bill on time and keep your utilisation ratio under 30 percent because if your ratio is higher than this, you can lose points from your credit score.
For example: You have a credit card with a $4000 credit limit. If you have a $2000 balance, then you have a utilisation ratio of 50 percent. ($2000/$4000 = .50, or 50 percent). This is quite high!
Again, know when your payments are due and ensure you keep ahead of these at all times. The last thing you want is being lumped with an excess amount to pay and lost points on your credit score.
Be smart when using your credit card, remember even though it seems like free money at the time, it is still your money that you have to repay in the long run.
All these tips will help you improve your credit rating dramatically.
#5: Make two payments per month
Are you having trouble keeping low balances?
How about you outsmart the credit score by making two payments per month instead of just one?
This will not only keep you ahead of the game but in some instances like a mortgage, it will keep your repayments down and mean that you will pay less interest in the long term.
Wouldn’t it feel nice to pay your mortgage off years earlier than what you originally thought?
By being diligent and organised, this thought can definitely become a reality.
For more budget help and financial planning assistance and to improve your credit rating, then you can head to https://www.moneysmart.gov.au/ or email our team today at email@example.com Ph: 1300 43 65 69