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  • Writer's pictureTanya Louise

Finance: Understanding Credit & Improving It

If you want to make sure that you are looking after your finances as well as possible, one of the main things that you are going to want to focus on is your credit score.

This is something that you might well not look at that often - and that’s just as well, for looking at it often decreases it. But you do need to be aware of it, and more than that you need to be able to understand it, which is something that you can only do after some time.

In this post, I'm taking a look at some of the things about credit that you mgiht want to focus on and understand a little better.

It Can Change Quickly

If you have recently checked your credit score, and it is not as high as you would like, don’t fret. It’s not the end of the world - in fact, your credit score can rise and fall surprisingly quickly, and you might be amazed at how soon you can actually get it back out of the hole it might be in. of course, that doesn’t mean it’s always easy - it will likely take work. But it is something that is going to change fairly quickly at least, so you don’t have to worry about that side of things. This should help to make you feel a little calmer about the whole thing, which is in itself important if you are to manage it properly.

You Can Still Borrow Money

One of the main reasons that you want to maintain a good credit score is so that your future borrowing options remain as significant and plentiful as possible. But that doesn’t mean that it is impossible to borrow money if you are struggling with a low credit score. It is always possible, although your options are going to be reduced the worse your score gets. However, even in the worst case scenario, you can always borrow money through a guarantor loan. Take a look at how to find the best guarantor loan rates here, and you will see that there are plenty of them to choose between - so you need not worry if you really do need to borrow some cash.

Improving It Can Be Simple

There are so many things you can do to improve your credit score. The main thing is to try and pay off whatever debt you might have. Whatever that is, it is going to be important that you try to get rid of it, and that you then work on not borrowing money and not paying it back again. You may have to wait to get a better deal on your mortgage, but that is the best thing you can do to improve your score. However, other factors do also sometimes play a part, such as whether or not you are registered to vote.

Make usre that you are doing whatever is necessary to keep your score as high as possible at all times. It really will make a difference to your life and make borrowing less stressful.

Love Tx


1 Comment

Jan 09, 2020

Being registered to vote is crucial for a mobile phone contract. Prob lots of other sorts of credit too tbh.

Ironically, one of the ways to improve your credit score is to take out further credit, like a credit card. Lenders want to see people with financial history not least because they want customers who are actually going to use the credit facility that they're applying for.

There are actually credit card providers who target people on the Register of CCJs. Also Money Saving Expert recommends credit cards as means of establishing a financial history and therefore upping your credit score. Obviously they advise you to pay off the monthly balance religiously mind.

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