How to Manage Your Personal Finances?

There are some strategies you can employ to improve your credit score;

Paying your debts and existing loans on time

Your payment record has a big impact on your credit score, and this is why you should make your payments on time. There was the introduction of ‘positive’ or comprehensive credit reporting, and now positive data like making your payments on time on your loan or credit products are factored in. If you miss your payment, it is recorded and it is going to negatively impact your credit score.

Paying bills on time

Paying your utility bills on time is also important when improving your score. This is even more important when the bill is £150 or more. If the payment is over this amount and it is overdue by 60 days or more, it can be listed as a default on your credit report. Defaults are one of those things you don’t want to have on your credit report. The default remains on the credit report for five years. If you want to stay on top of your payments, consider setting up automatic payments. When moving, make sure you let your utility providers know so that your bills don’t remain unopened. Ask them whether they can send you the bill via email.

Think twice before you apply for a new credit

Whether you are going to be approved or not, your application is going to show on your credit report, and this can affect your credit score. If you make many applications in a short time, it is going to affect your credit score because the lenders see that you are under credit stress.

Applying for credit is not bad, especially when you are doing it to replace or structure a credit product – like a card that has a balance transfer offer or a personal loan so you can consolidate your debt – because it is going to help you manage your debt better, which is going to improve your credit score. Visit This strategy is going to work if you pay down your debt, and not just move it around. You should be careful when doing this because every application is going to be reported in your report, and lenders can see this as a red flag. Take your time because you don’t want to hurt your credit score while trying to improve it.

Contacting your credit provider or financial counselor any time you need help

If you find yourself having a hard time managing your bills or repayments, consider asking your credit provider or financial hardship assistance. It is also a good idea to talk to a financial counselor because they help people in such situations. They provide a free, confidential, and independent service, and they can help in negotiating with your creditors and developing a budget.

You need to avoid companies that promise to “clean” or ”repair” your credit report at a fee. There is no way of removing information on your report as long as it is correct, even if it is negative. 

Checking your credit report for any mistakes

You should go through your credit report and see if there is any information that is inaccurate. If there are any mistakes on your credit report, contact the credit bureau so they can correct the mistake. The inaccurate information might be pulling down your credit score.

Some examples of inaccuracies you can find in your report include;

Duplicate debt listings or incorrect debt

Debts on the report even though you did not take them out (this can be the result of fraudulent activity and identity theft)

Repayments you have made haven’t been reflected

Cross-reference your report against your financial documents such as bank statements because it helps you spot any mistakes or inaccuracies in your report. Contact the credit bureau or credit provider and let them know about it. They are going to amend your report, and this can end up improving your credit score. read more



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