What are the best things to do to increase my credit score?

Improving your credit score is actually pretty easy, all you need to do is add new positive information to your credit file and avoid adding any negative information such as missed payments, defaults and even multiple changes of address.

The best way to increase your credit score really depends on where you are at right now. But here are some things that may be worth considering depending on what your situation is.

Stop making mistakes

Little slips like missing a credit card payment or going past your credit limit are the surest possible way to hurt your credit rating, so if you think there is any chance that you might make such a mistake or have done in the past; then keeping better track of your finances is the single best thing you can do to avoid getting in your own way.

Get a credit card, lose a credit card or use it more

If you don’t have a credit card then get one, if you have one make sure you use it and, as with everything, moderation is key so if you have too many then cancel a few. Using a credit card and paying it off in full gives you the chance to add lots of positive credit history every month.

Pay off standing debts

If you have a long term credit card bill or overdraft then get it paid off in full asap. These forms of credit are meant to be used short term and keeping a long standing balance doesn’t help your credit at all. Once you get your overdraft paid off you can start using it again but ensure that you pay it off regularly.

Close old accounts

Having one credit card and one overdraft is sufficient to improve your credit rating. Having extra credit facilities that you don’t use (such as a second or third credit card) takes up your ‘credit capacity’ and will limit how much you can borrow when you need to.

Be patient

Finally, don’t expect huge improvements over night. A good credit score is an indicator that you have a long history of being responsible with your debt, it can’t be rushed. If you follow common sense rules and are careful with your money, your credit score will improve.

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