Shit credit? How to improve your credit score.

Shit credit? How to improve your credit score.

Consider the following strategies:

1. Pay your bills on time: Timely payments have a significant impact on your credit score. Setting up automatic payments or reminders can help ensure you never miss a due date.

2. Keep credit card balances low: High balances relative to your credit limits can lower your score. Aim to keep your utilisation rate below 30% of your total available credit.

3. Maintain old credit accounts: The length of your credit history contributes to your score. Keeping older accounts open, even if you're not using them frequently, can be beneficial.

4. Limit new credit inquiries: Each time you apply for credit, it can cause a small dip in your score. Try to apply for new credit accounts only when necessary.

5. Diversify your credit mix: Having a mix of different types of credit, such as revolving credit (credit cards) and installment loans (mortgage, auto loans), can positively impact your score.

6. Dispute inaccuracies on your credit reports: Regularly review your credit reports from the three major credit bureaus (Equifax,, Experian) for any errors. If you find inaccuracies, dispute them promptly.

7. Consider a secured credit card: If you're building credit from scratch or repairing bad credit, a secured credit card (where you deposit money upfront as collateral) can help you establish a positive payment history.

8. Become an authorised user: Being added as an authorised user on someone else's credit card account can help you benefit from their positive payment history, as long as they use the account responsibly.

Remember, improving your credit score is a gradual process that involves responsible financial behavior over time. There are no instant fixes, but consistent effort will lead to improvement.

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