30 ways to improve your credit score and boost your finances before summer

We’ve nearly reached the end of the first month of 2022, and if you’re struggling to keep up with the financial resolutions you made on New Year’s Day, all is not lost.

Money Experts at Ocean financing have great tips to get you back on track and boosting your credit score in months.

Whether you’re planning to make 2022 your year of positive change, whether you’re saving for a deposit or a new car, wanting to pay off credit card debt, or just want to start saving, I hope there are a few quick wins on the list below. to help you get started.

15 Ways to Instantly Improve Your Credit Score

If you’re looking to improve your credit score over the next few weeks, here are some quick wins:

  • If you’re a tenant, ask your landlord to put you on the tenancy swap initiative to show you’re paying rent on time

  • Check that your address is correct on old active credit accounts, as this contributes to the accuracy of future credits

  • Add a landline number to credit checks to prove stability

  • Include your name on household bills, even if you’re a roommate, as it proves you’re making your payments on time

  • Register on the electoral lists to boost your score by around 50 points

  • If you can’t register to vote, get proof of residency to add to your credit report

  • Make sure all your direct debits are paid on time.

  • Do not withdraw cash from a credit card, as you will incur interest charges

  • Think twice before agreeing to be financially tied to those with bad credit

  • Disassociate yourself from previous financial partners by closing joint accounts, mortgages and more

  • Use calendar reminders to stay on top of your finances so you don’t miss any payments

  • Pay off your debt with your savings if you have any, as this will save you interest

  • Be thrifty and live within your means to be more likely to borrow less

  • Check your credit report for errors and contact the credit reference agency directly to correct anything you find

  • Protect yourself from scams, as falling victim to them can cause unfair damage to your credit score

15 Ways to Improve Your Credit Health in the New Year

Ocean financing also shared 15 ways to improve your credit health with long-term goals to achieve by summer:

  • Always stay below 25% of your credit limit, so if you have £1000, spend less than £250 a month

  • Do not open a new credit account for six months and you will increase your credit score by 50 points

  • Having a variety of different types of credit to prove that you are a reliable borrower – for example, a credit card with a consistent balance and payment amount, having a loan, a mortgage, and a store card (if all of that is necessary)

  • Use free eligibility checkers to see if you’ll be accepted for credit before you apply

  • If you’re applying for credit, choose the timing carefully – if something is about to expire on your report, it may be worth waiting until later

  • Keep a fixed address – anything over three years seems more favorable

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  • Get a credit rebuilder card if you have a bad credit history or none at all. These come with a low, manageable limit and can help build your credit score

  • If you have high-interest debt that you’re struggling to repay, consider a debt consolidation loan

  • Avoid payday loans if you want a mortgage

  • Avoid using overdrafts – authorized or not – as they are classified as a form of borrowing

  • When paying your credit card, pay more than the minimum if you can

  • Also, two payments per month on credit cards, as this suggests you are paying more than the minimum

  • If you’ve had financial problems in the past, consider a prepaid card where you load the card with cash and use it like a credit card.

  • Pay off existing debt before applying for more credit where possible

  • Pay your car insurance monthly by direct debit instead of an annual payment

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All of these tips are detailed further in the Ocean Finance online guide herewhich also debunks some credit score myths and lets you test your credit wisdom.

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