If you’re one of the many Australians who are looking to boost your credit score, you’re in luck. There are several methods that you can use to improve your credit rating. With this in mind, we will explore some of the best ways to boost your credit score. We will also provide some helpful tips on how to maintain a good credit rating. So, if you’re ready to start improving your credit score, keep reading!
Clear Your Report of Mistakes
Did you know that a lot of Australians have mistakes and errors on their credit reports? This is why it’s so important to take the time to go through your report and make sure that everything is accurate. If you find an error, dispute it with the credit reporting agency and get it corrected right away; this can help to significantly improve your credit score.
Pay Your Bills on Time
Paying your bills on time is one of the most important and effective ways to boost your credit score. Set up automatic payments if it helps you stay on top of due dates, or try using a budgeting app to make sure you’re never late with payments. The more bills you miss, the less likely you are to have a good credit score.
Reduce Your Credit Utilisation Ratio
In case you didn’t know, your credit utilisation ratio is the amount of credit you’re using compared to your total available balance. It is recommended to keep this ratio below 30%. If you have maxed out your credit cards, consider paying down your balances for a quick boost to your rating. Instead, try to maintain a low credit utilisation ratio by making regular payments, and trying to pay off the balance in full whenever possible.
Check Your Credit Report Regularly
How do you know if your credit score is improving if you don’t keep track of it? That’s why it’s important to check your credit report regularly. You can access a free copy of your credit report from all three major credit reporting bureaus in Australia. Every so often, review this information and look for any discrepancies or errors that could be negatively impacting your score. If you find any, take steps to fix them immediately.
Pay Down Debt
Although this is easier said than done, paying down your debt is also crucial for improving your credit score. Make sure you’re paying more than the minimum each month and try to eliminate any small accounts first, as these will generally provide a bigger boost to your score. If necessary, consolidate any larger debts into a loan with a lower interest rate.
Use Responsible Lenders
If you take a short-term loan, ensure that you are using a reliable lender. Pay attention to the interest rate and length of the loan term. To avoid taking on too much debt, look for instalment loans that are manageable and have a set repayment schedule. Cashify offers travel and holiday loans, for example, that are tailored to your needs and credit profile.
Limit Your Applications for Credit
The more you apply for credit, the more inquiries appear on your credit report. Too many inquiries can lower your credit score, so it is important to limit your credit applications. Before applying for a loan or credit card, consider your payment capacity and credit profile to determine if you qualify.
By following this advice, you can boost your credit score and increase your chances of qualifying for a loan. With the right set of tools and strategies, you can easily manage your credit score and set yourself up for a brighter credit future!