Most people have at least one hiccup in life financially, and it can leave your credit score in tatters.
Perhaps you missed a few payments on a credit card, couldn’t make your council tax payments or had to use an Individual Voluntary Arrangement (IVA) to get you back on track.
Then, just when you get straight, you find yourself blacklisted for credit. You apply for a loan and are quoted an outrageous interest rate.
Perhaps you go to sign a new mobile phone contract and they turn you down point blank. Hey – you need to get your credit score back fast, as well as your life!
Here are 5 ways you can rebuild your credit score fast!
Find your current credit score
You need to know what your current credit score is so you can monitor any improvements. The scores range from 300 (terrible) to 850+ (ideal!).
Apply online to Experian, Equifax and TransUnion. These companies all hold up-to-date info about how your manage credit. You are entitled to one free credit check per year and after that there is a small fee.
Dispute any errors
Look through those reports and if you see anything that is incorrectly, dispute it immediately. These companies do not always get it right. You may have cleared a CCJ, catalogue credit or loan but it may still be showing as current on your report.
Apply for new credit infrequently
One of the things that can lower your credit score is applying to lots of different sources for credit. It may be genuine as you try to fund a new vehicle, for example.
However, each time a bank, loan company or credit company looks up your credit history it will knock a few points off. It makes sense to keep applications to a minimum, at least until your credit score is afloat again.
Pay credit cards twice monthly
Paying off your credit card in one go is not necessarily the best way to show you handle credit responsibly. Make the minimum payment when/before it is due, then a couple of weeks later make another additional small payment.
It will do wonders for boosting your credit score!
Set up payment reminders
One thing you don’t want to do is miss a payment, either for a utility bill, loan, rent or credit card minimum payment.
Either put them all on direct debit (and then monitor your bank account to make sure it stays solvent) or put the payments on a planner or calendar that alerts you the day before any payment is due.
If you are having problems with debt, it pays to get help early and perhaps avoid losing your good credit history. Aunt Meg is an expert at knowing how best to tackle your debt and we’re always happy to help.
Get in touch today without any obligation and see what Aunt Meg suggests. Hopefully you’ll find the best way to manage your debt and you’ll never need to use our tips for rebuilding you credit score.