3 Secrets To A Better Credit Score

Saturday 30th Apr 2022 |

One of the weirdest comparisons we have ever heard of is that a good credit score is a lot like a good relationship. While this is a bizarre comparison, it does have some valid points. 

You shouldn’t keep your lender waiting, you should not have too much on the go at once, trust is needed, and you need to learn to accept and forgive mistakes. So, this metaphor is odd, but it makes some good points. 

A good credit score is a requirement to further the very real human dream of financial freedom. However, it is not always an easy thing to get for many of us. 

The cost of living is ever rising, and wages just do not match this, so it only makes sense that people take out more loans. However, this can be damaging to your credit score if not managed properly. This is why we are here to tell you how to get a better credit score.

Needing A Good Credit Score

Credit scores actually play a bigger role in your life than you may think. They will determine the interest rate you will need to pay for your loans, mortgages, and credit cards. Although, they can also often dictate if you can even get a loan too. 

It is a 3-digit number that predicts the level of risk lending you possess to a lender. The need for a good credit score will affect your life in many ways, and if you have a lot of debt, it may seem like a faraway dream, but it is not too difficult to increase your credit score.

What Affects Your Credit Score?

The FICO Score dominates the market and there are 5 points that will affect your score. 

These include the history of your payments, how much you owe on your account(s), the length of your credit history, any new credit, and if you have a mix of credit. 

There are other factors that may play a role in your credit score, however, these are the five main things that will be significant. 

3 Secrets To A Better Score

So, if a good credit score is like a good relationship, then the main pointers would be the same ingredients to a good date. This is our top credit secret.

Note that there are other things you can do to increase your score, however, these three-pointers are the key aspects you will need to increase your credit score.

  • Never Turn Up Late

When you’re on a date, turning up late is a bad sign. So, when you are paying off loans, or credit cards, always make sure that you make your payments on time. 

Sadly, not paying on time will have some more adverse consequences than turning up to a date a bit late. Not paying up on time can lead to debt collectors turning up at your door if you do not pay up too many times. 

Never keep the loan companies waiting, if you pay on time, all the time, this will have the opposite effect and can boost your credit score, which is definitely what you want to get out of paying off your loans/ credit. 

So start off your credit bettering journey by paying off your loans on time. 

  • You Do Not Want Too Much At Once

Dating too many people at once will end up pulling you all over the place. If you have too many debts out at once, this will do the same thing to your bank account. 

Too many debts at once, coming out at different times in different amounts with different interest rates will end up stretching you way too thin, and it will end up creating a cycle of debt, urging you to take out more loans and end up further in debt. 

While it may be hard to avoid taking out another loan, it is best to pay off what debts you already have before taking out any others.

  • Trust Is Needed

Finally, you will need trust, this might seem odd. You need to have a good relationship with your lenders. You will need to trust them to give you what you need, and they will need to trust you to pay the loan back. 

It will take a while for lenders to trust you, but by paying back your loans on time, or using credit products to build up a good score, you can make it easier for lenders to trust you. A good rapport with lenders will go a long way.

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