Your credit report is the first point of call for lenders if you decide to apply for a credit card, a loan or any other form of credit. It doesn’t take much to send your credit score into decline, but there’s many ways to improve your credit score and become more attractive to lenders.

I’ve put together some simple tips to help you on your way to improving your credit score and getting a little more love out of life.

1. Pay Your Bills On Time

When lenders review your credit report, they’re interested in how reliably you pay your bills. Staying on top of payments consistently can improve your credit score over time.

2. Pay Attention To Your Credit Utilisation Ratio (CUR)

Your Credit Utilisation Ratio is calculated by adding all your credit card balances at any given time and dividing that amount by your total credit limit. This gives you a clear idea of the amount of credit you’re using.

To work out your average Credit Utilisation Ratio, look at all your credit card statements from the last 12 months. Add the statement balances for each month across all cards and divide the figure by 12.

For example, if your statement balances for the year add up to £5000 and you divide this by 12, your average monthly credit use is £416.

Lenders typically like to see low ratios of 30% or less.

Check out my book, Time is Money for more finance and business advice

3. Don’t Cancel Unused Cards

Cancelling unused credit cards can negatively impact your overall Credit Utilisation Ratio. Instead, use them to improve your credit score with my next tip!

4. Use Your Credit Card Little & Often

Instead of cancelling your credit cards. Try to use them to make small purchases often. Keeping your credit card active in this way makes you more attractive to lenders when you’re paying off your bill each month. This can also increase your credit score over time.

5. Avoid Making Muliple Applications In A Short Time Frame

When you make an application for credit, a ‘hard search’ is carried out on your account and a mark is left on your credit report. Making too many applications in a short space of time can negatively impact your credit score, because it appears to lenders that you are desperate for credit. Resist the temptation to apply again if you’ve recently been rejected, and focus on improving your score before trying again.

Start Making Money On Your Own Terms With My New Book Available Here

6. Use An Eligibility Checker

When you used an eligibility checker, a ‘soft search’ is carried out on your account to see if you’re eligible for the product you want to apply for before actually applying. Lenders are able to view some of your information, and the search doesn’t impact your credit score.

This lets you know whether you’ll be accepted or rejected for the product or service you want to apply for without damaging your credit score in the process.

7. Check Your Credit Score Regularly

Checking your credit score regularly allows you to make sure all information is correct and up to date. Mistakes can lower your credit score more than it should be, so it’s important to double check all your information.

8. Get On The Electoral Roll

Being registered to vote means that credit agencies are able to verify who you are. This makes you appear more stable to lenders.

Improving your credit score is essential for various reasons. If you aspire to get a mortgage or to secure a personal loan, then lenders take your credit report as a sign as to whether you will be able maintain your payments or if they’re not the right credit agency for you.

Find out more about money and business in my latest books:

Time Is Money

How To Become A Freelancer & Start Making Money On Your Own Terms

Connect with me:

Twitter: @TKWN_World

Facebook: T K Williams-Nelson

Instagram: @timeismoneymedia

Published by T K Williams Nelson

I'm Tannika. Author & Writer. Business Owner. Spoken Word Poet. As featured in The Kilburn & Brent Times, The Voice Newspaper, Brent Magazine, BBC and more. This is my space. I share my work, my experiences and things I find interesting. Shop my streetwear and crochet brands at my online boutique, Unique Boutique London, and my books: Tales of the Hood Underclass 7 Time is Money Available on my author website, Amazon, Barnes & Noble and all other online book retailers. For enquiries: timeismoneyinquiries@gmail.com

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