A high credit score can be a bonus when applying for other loans – it can even sometimes reduce the amount of interest you pay on them.
But how do you get a better credit score? Market Watch had these tips:
- Prioritise your debts – Get your credit card paid off before other types of loans. Keep up minimum payments (at least) on other loans, but put your energy into reducing credit card debt for the biggest impact on your credit score.
- As credit card debt has a significant influence on credit score, consider changing your credit card debt to a personal loan. This will attract a higher credit score, providing you don’t continue to use the credit card after that.
- Always keep up to date with payments – A missed or late payment can remain on your credit report for seven years.
- Check how much credit card debt you have. For a better credit score, your debt should not exceed 10% of your total credit limit.
- Be vigilant about checking credit reports – Errors are not uncommon and a mistake could impact on your credit score.
