A good credit score can be difficult to achieve, but it doesn’t have to be that way. The term credit score is most likely familiar to you if you have ever purchased anything using credit in the UK. If you have any outgoing payments, want to pay monthly on your phone or if you want to rent anything you will have to have a good credit score.
What is a good credit score?
Undoubtedly that is why you have visited this page. Moolr are happy to help you understand your credit score and what you can do to improve it.
A good credit score can be elusive. This is especially so when every lender, broker and vendor has a different rating system. With no central credit rating system, it can be difficult to prepare your credit score. It can be even harder to improve on it. However, all is not lost.
In general your credit score will depend on your income, previous debts, payments and more. Also relevant is how many credit cards or bank accounts you own. If you pay all your debts on time, keep on top of your bills and maintain a steady cash flow then your credit score is likely to be higher.
Missing a payment, late repayment, bankruptcy and repossession can all reflect poorly on your credit score and bring it down.
How can I improve my credit score?
There is no one catch-all method to improving your credit score. The best strategy is to keep on top of your credit and maintain a steady schedule:
- Repay all debts on time. Negative balances, low repayments, late payments and unreliability all reflect poorly on your credit score.
- Keep your credit card under control. While you may be tempted to avoid a credit card altogether, your credit score could be lower if you have never held and repaid credit before. The longer you hold a credit card and the quicker you repay payments, the better your credit score will be.
- Plan long term. The longer you prove you can keep up with repayments and be trusted with credit, the higher your credit score will go.
- Be responsible. This is the best advice we can give. The more responsible you are with your money and the better planning put into your finances then the more likely you are to maintain a good standing with your credit score.
