5 Credit Score Building Tips

As a 23 year old, it's safe to say I've had times where I have handled money badly. (Actually badly is a bit of an understatement). Thankfully I can also say that I've sorted myself out now and I have a grip on things a little better - I cut up my store cards and credit card and now I try my absolute best to live within my means. One thing I have learned through it all is how important my credit score is, and how to head in the right direction to build it back up again. Today I thought I would share a few tips with you on how to help make your credit score go up rather than down!

Credit Score: Your credit score is a number that represents the risk a lender takes when you borrow money.

Some people may think that a credit score is unimportant, however, a credit score can determine whether you are allowed a phone contract, car or even a house (both mortgage and rented!). Lenders are less likely to look at you if you suffer from a bed credit score as they see you as a huge risk (untrustworthy shall we say) so building a good credit score can really benefit you. There are a number of ways to help this score rise but my 5 top tips would definitely be:

Make sure you are on the electoral role at your current address

This verifies your address in a way, so companies can match up the details on your I.D with the Electoral Role. It is also a way of helping stop identity fraud.

Try stick to the same accounts

If you open up too many accounts at once or only use accounts for short amounts of time before shutting them down this can show up as a red flag to lenders. Try keep loyal to banks etc and keep your average account age high.

Keep your balances low

Although companies may offer you high amounts, try to only use a small percentage of it. This will show you are good at utilizing your credit. Just because a company offers you £5,000 it doesn't mean you have to use it all!

Start building good credit
Build good credit by having a small credit card which gets paid off regularly (for example) or even a small loan. Companies like cashlady offer short term loans which, if paid off correctly, can actually help build your credit score. (Always read terms and conditions first and ensure you can afford to pay it off correctly)

Check your Credit Score regularly
It really helps to monitor your Credit Score to see where you are going right (or wrong) and also keep an eye out for any mistakes! There are a few sites available such as Experian and ClearScore which supply a free monthly credit score to help keep you on the right track!

So there are just 5 of my Credit Score building tips but honestly, there are tonnes! Let me know, have you built up your credit score from nothing before and if so, how did you do it?

Disclaimer: Collaborative Post. All opinions and photographs are my own.