How To Repair a Bad Credit Score

Having a higher credit score is much more important than you may think. Unfortunately for many of us, we’ve let things get in the way of keeping the score as high as possible. We understand that your credit score isn’t something that you physically see or encounter every day. However, this shouldn’t take away from its importance. Understanding the fundamental components of credit, including your on-time payments, your balances, and your financial management will help you pinpoint the issues that are having a negative effect on your score, enabling you to move away from the problem. Dealing with financial-related problems can often make us feel alone. Despite being very stressful, there are millions of people in the UK alone who also experience similar problems. In fact, according to Experian, the average credit score in the UK is 797/999.

Check Your Score / Report

Your credit report contains information about your credit usage over the last 10 years. The summary of this report is available through each of the three credit bureaus, including TransUnion, Equifax, and Experian. Your credit score is produced through your credit report, meaning it is crucial that you take care of your finances to keep your credit score as high as possible. Your credit score is much easier to access than your credit report. You’ll commonly find that card issuers and credit scoring websites can be easily found and used with no fee. Thankfully, only a light credit check is needed to check your own score, which has no negative effects on it. However, on the other hand, free credit reports are only offered at least once every 12 months. So, if you need to access any information following this, you will have to pay a fee.

Fix Any Issues On Your Credit Report

Following the evaluation of your credit report, you may encounter some problems that need fixing right away. Any small, minor inconveniences or errors on your credit report could actually be holding you back much more than you thought. In fact, if you’ve previously applied for a personal loan and been rejected, this could be the reason why. Therefore, while you have the opportunity, it is important to carefully ensure that all of the information formatted in the report is correct, from your name and age to your credit history. If you find any details that don’t seem correct, contact your provider as soon as possible to get the data changed.

Pay Your Bills On Time

Paying your bills, also known as your payment history, makes up the largest percentage of your credit score, standing at 35%. When a personal loan lender is evaluating your application, they want to ensure that your repayments will be on time. In order to make their judgment, they will base their decision upon your credit score. So, if it is on the lower end of the scale, it is likely lenders will assume your payment history is on the poorer side. This is why we suggest concentrating on adjusting your monthly payments if you wish to fix your credit. While it might seem difficult to make all of your payments on time, there are many solutions to the problem. This could be through more efficient budgets or perhaps setting up a direct debit.

If you’re in the need of a financial boost or you’re struggling with your finances whilst improving your credit score, here at Simple Personal Loans we can help. Click here to find out more.