If you're planning to apply for a loan - whether it’s for a home, car, or personal expense - your credit score plays a huge role in determining your approval, interest rates, and repayment terms. A strong credit profile can mean access to better financial opportunities, while a low score may hold you back.
The good news? Improving your credit score doesn’t have to be complicated. With the right strategies, tools, and habits, you can build and maintain a healthy credit score that opens doors to financial freedom.
Why Your Credit Score Matters
Your credit score is based on several key factors, including:
Whether you’re just starting your credit journey or looking to optimise your score, this guide will walk you through the best strategies to improve your credit, monitor your progress, and get ahead financially.
Your payment history makes up 35% of your credit score, so missing payments can have a significant impact. If keeping track of due dates is a challenge, consider setting up automated payments.
A general rule of thumb: Keep your credit usage below 30% of your total credit limit. For example, if you have a £5,000 credit limit, aim to keep your balance under £1,500.
Reducing your overall debt load can improve your credit score and save you money on interest. Start by paying off high-interest debts first, especially store credit cards, which often carry the highest rates.
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Did you know that 1 in 5 credit reports contain errors? Checking your report regularly helps you spot mistakes that could be dragging down your score. You can request a free credit report annually or use an app that provides regular updates from the three major credit bureaus.
If you have accounts in collections, paying them off can positively impact your score. Some debt collectors may even agree to remove negative marks in exchange for payment—this is known as a "pay-for-delete" agreement. If you’re struggling with debt, consider negotiating a payment plan to start improving your standing.
Take Control of Your Credit Today
Building a strong credit score takes time, but every step you take now sets you up for better financial opportunities in the future.
Incredible makes managing and paying multiple credit cards easier. Incredible is now available on the App Store and Google Play Store- start your journey to better financial health today!
