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#AD – Despite what some financial gurus might want you to believe, most of us need a credit score and a good one at that. There aren’t many people these days that can go through life without needing to borrow money at some point for a house or a car, or even just to tide you over.
However, you need a credit score for more than just consumer debt, even things like phone contracts, and of course, flat rentals all require a check on your credit history. The better it is, the more likely you are to be both accepted and offered the “good” deals.
How to build your credit score?
Building a good credit score takes time and consistency. It is not something that just happens overnight. Instead, it is about creating and maintaining good habits with money.
Here are some of my favourite tips and strategies:
Get on the electoral register
Now, this is the one you’ve probably heard before and is likely the easiest one to fix. You can visit the Government website, complete the details, and this will register you to vote. The reason this helps is that it provides the credit agencies with some proof of who you are and where you live.
Pay your bills on time and every time
This is where you need those good habits. If you are one of those people that is always forgetting to pay bills or routinely pays them late, then this is not going to look good on your credit file. Lenders like people that are trustworthy and consistent. Paying bills on time every time paints that picture of you.
Break the debt habit
Fundamentally, there is nothing wrong with debt. But a reliance on using credit cards and loans to fund your basic lifestyle is a worry. Credit card and loan providers are rightfully going to be concerned about people who are maxing out their credit cards each month. Having an emergency fund and a good budget can help with this.
Now you are probably thinking that I’m making it sound easy when in reality making these shifts in your financial habits can be hard.
Need a little help?
Portify offers a new way to build credit scores through a single membership fee. Unlike credit builder cards which come with debt you probably don’t want, and other companies that give you access to your credit reports along with generic advice, Portify does more.
It helps you manage your finances using Open Banking to track your income and expenses. It will give you a nudge to make sure that you pay your recurring bills and subscriptions on time. Plus, it learns your spending habits and helps to keep you out of your overdraft.
Portify has partnered with all major UK credit agencies (Experian, TransUnion, and Equifax) to help build your credit score. Furthermore, there is no hard credit check!
It takes just 3 mins to sign up and you can use the financial tracking tools on the app for free. For help building your credit score, plans start from just £5 per month, and generally, people start seeing improvements within 3-4 months. (Results may vary, visit Portify.co for details).
Whatever your current credit score, it is possible for you to turn it around. It will take time and a commitment from you, but you can do it! I believe in you!