If you find yourself with a less-than-impressive credit score, don't worry. With dedication and smart financial habits, you can improve your credit score over time.

Pay your bills on time

Timely bill payments are one of the most critical factors in determining your credit score. Set up reminders or automatic payments to ensure you never miss a due date. Consistently paying bills on time demonstrates responsible financial behaviour and improves your creditworthiness.

Reduce credit card balances

High credit card balances relative to your credit limit can negatively impact your credit score. Aim to keep your credit utilisation below 30%. If you’re struggling with this, speak to your bank, or read our article on how to stick to a budget.

Don’t open too many new accounts

Each time you apply for a new credit card or loan, a hard inquiry is made on your credit report. Multiple inquiries within a short period can lower your score. 

Settle debts

If you have any debts, work on settling them as soon as possible. Negotiate with creditors to set up payment plans if needed. Clearing past due debts will reflect positively on your credit report.

Keep old accounts open

The length of your credit history plays a role in your credit score. Closing older accounts can shorten your credit history and reduce your overall score. Keep older, well-managed accounts open to maintain a positive credit history.

Your credit score

Improving your credit score takes time and discipline, so be patient and stay committed to making positive changes. By following the tips outlined above, you can take charge of your financial journey.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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