14 Nov Boost Your Credit Score Today with Your Credit Report

Posted at 14:46h in Credit Score by

Having a low credit score can impede your loan, credit card, or store card efforts. Your credit report and credit score are keys that unlock the doors to the world of home loans, auto loans, student loans, and other gateways to a future you love.

There are many different credit score meanings. Usually, one below 580 to 600 means you’re interpreted as a high-risk consumer, especially if you have previous items on your record, like late payments, defaults, or even derogatory marks like debt review. These can cause credit providers, insurers, and even landlords to ask you to pay more for deductibles and deposits or command higher interest rates. They could even refuse your request for credit or insurance outright, in case you abuse the service.

Let’s discuss how you can start improving your credit score today, beginning with your credit report.

How Can My Credit Report Improve My Credit Score?

Your credit report is the key to unlocking better financial wellness. When you understand your credit report, it’s easier to assess the metrics that need TLC, so you can make better financial choices and dispute bad marks. Yes, fixing a bad credit score takes time, but once you’ve created a positive payment history, your credit score will shoot up. Suddenly, accessing credit facilities will become a whole lot easier, and you’ll receive the best loan terms and premiums because of your demonstrable financial responsibility.

Let’s outline how to use your credit report to fix your credit report.

Assess What’s Wrong

Get a copy of your credit report using Credit Boost’s free online credit checker. Then, start decoding your credit report.

Your credit report outlines:

  • Your particulars
  • Fraud indicators
  • Scores
  • Your debts
  • Payment behaviour
  • Loans you have
  • Public records
  • Collections history
  • Enquiries
  • Property interests
  • Principal links

Derogatory indicators or marks in the score, debts, payment behaviour, loans, public records, collections history, enquiries, and principal links sections show that you’re irresponsible with money. Here’s how to fix that.

How to Fix Your Credit Score

If you have a bad credit score (below 580), you’ll notice that you either have nothing on record or that you have bad marks, like late payments, public records, a high credit utilisation rate, defaults, accounts in arrears, or many hard enquiries.

If you have nothing on record, you can raise your credit card by taking out a store card or credit card. Use no more than 30% of your total limit and pay your balance in full at the end of each month.

If you have:

  • Late payments: pay them off and pay on time going forward.
  • Public records: pay them off and dispute them with credit clearance.
  • High credit utilisation: reduce your balances until they make up 30% or less than your limit.
  • Defaults: pay off the defaults, then dispute them.
  • Accounts in arrears: pay off the accounts, then clear your credit.
  • Hard enquiries: wait at least 90 days before making another one.

Note that your credit score takes at least 30 days or one billing cycle to update.

If you need a loan because you’re struggling to make ends meet, consider debt counselling instead. This is a legal process that mandates that creditors reduce the interest rates and repayments of your outstanding debts.

Fix your credit score with a free credit report

If you would like to boost your credit or clear your debt, contact Credit Boost. We would be delighted to help you regain financial agency.