Experian Credit Score – 6 Ways to improve it
Credit score is an important aspect of an adult’s life since it dictates every financial transaction, e.g., getting a loan to buying your very own house via a mortgage.
We all dream of buying a house at one point in our lives. For some, they can get it within reach through the process of a mortgage. However, you will need a high credit score to make this happen.
The good news is that you can improve your credit score as long as you follow these best practices. Here are 6 ways on how to improve your credit score on Experian.
Check Your Standing With a Free Credit Report
Being aware is the first step in building good credit.
Did you know that not actively monitoring your records can lead to a lower score overall? Aside from this you will have to know which practices can get you on good standing. With this in mind, you can get a peek at how well or how poorly you’re doing with a free credit report. The GDPR has made this possible- before, you had to pay Â£2 to get a snapshot of your credit standing. You can do this at least once a year so you’ll know where you stand. Experian is one of the leading credit score companies that’s popular with banks and lenders, so if you had to choose then they should take top priority.
Set Up Fraud Alerts
Even the best payers can get their lives upended by instances of fraud. You could be paying your dues on time regularly across your financial portfolio, but all it takes is one fraudulent activity to ruin it. The longer it goes the lower your score drops, and sometimes the person doesn’t know about it until it’s too late.
To safeguard against these attacks you can get a service that will notify you by SMS or email if there are any suspected fraudulent transactions taking place. These are usually offered by financial institutions, so it’s best to take a look and pick the one that’s right for you.
Secure Your Accounts With a Strong Password
Prevention is still better than the cure, and it applies to improving your credit score. Fraud isn’t the only thing you have to be worried about. Hackers and unscrupulous individuals can gain access to your credit and financial records, and for this you’ll need to be vigilant.
Best practices include changing all your bank account or credit card passwords and having a secret password set up. So anytime you speak with a bank representative regarding a credit check you’ll know they come from legitimate sources when they ask you for the secret password. Don’t be complacent just by having your passwords changed. Repeat it every 6 months or so in order to confuse would-be attackers.
Fix Issues With Your Credit
There’s a high chance that there will be some items on your credit score you’d like to dispute. Be prepared to spend a significant amount of time if you do see a low credit score. However, this will be all worth it in the end.
Some of the things you need to check are the following:
- Do you have the correct date of birth and last name on the record?
- Were there any late payments to services you didn’t know about?
- Was there a CCJ, or County Court Judgement you missed?
- Is the credit report in your maiden name?
- Is your vote registry still at your old or previous home address?
- Is your name on the voter registry?
You should also check for the impact of not paying small bills in ignorance. If you’re holding down a job then you can chip away at it during weekends.
It’s recommended that you find and keep burdens of proof for every dispute you may have since you’ll be asked for them. Again, it may sound tedious to check your credit report line by line but you’ll soon get the hang of it. Furthermore, you’ll know what to do next year, and the subsequent years after that.
Get Your Name On The Electoral Register
The electoral register ensures all your credit report information is up to date, which can go a long way towards improving your credit score. Doing this eliminates the need to update your data on credit reporting agencies and prevents unnecessary dings on your score.
Corrections can take several weeks but registering is only a one-time affair. Bottom line is that you need to make an effort.
Pay Your Debts and Bills On Time
Last but not the least you should set up your finances so you pay all your bills on time. The same goes with debts such as car loans, short term loans and mortgages.
Technology can help you keep track of your dues and financial obligations. You can incorporate them into your email or calendar, or download a dedicated app so you get timely reminders on when a major bill, such as energy or rent is due. A budget allocation app can also help in this regard so you can spread your income wisely and cover everything you need. Then, focus on clearing your debts, e.g., credit card balances and similar items by consolidating or taking note of when they’re due. Pay it off, then consider borrowing to show them you’re a capable consumer.
Remember, debt won’t go away unless you do something about it. Start saving money and live within your means so you can be debt-free in a number of years.
There’s no better time than now to work on your credit and improve it. The rewards are definitely worth it- you’ll be able to acquire short term borrowings or mortgages with lower interest rates when the lender sees you’re in good standing.
Most of the items mentioned are free or cost little to nothing. All you need is time, commitment and having a handle on your spending and budget. So, get started and improve your credit today!