Our credit score plays a huge part in our financial wellness. It affects many things that are important to us:
- Applying for a new job
- Buying a new house or car
- Applying for another credit card
This is why it's so important to take our credit habits seriously and stay on top of our credit scores.
Is this something you’ve been neglecting?
Well, the good news is that taking control of your credit score is not difficult, and it will benefit you for a long time. The habits that help you maintain a good credit score can also help you take responsibility for your financial wellness.
Let's take a look at a few easy ways to take control of your finances.
Monitor your spending
Budgeting is not always easy, particularly when you have many financial responsibilities. Many of us are good at setting up a budget, but we struggle to stick to our budget. However, working consistently on your budget makes it easy to identify and reduce unnecessary expenses. It takes discipline, but it means you can stop yourself from relying on credit and creating debt. If drawn up correctly, your budget will also allow you to be flexible and treat yourself, now and then.
Build your credit history
Are you applying for credit for the first time? This might be difficult because the lender has no way of knowing if you’re good with paying your bills on time. Luckily, building credit is not difficult: you could even apply for a credit card. Creating a positive credit history will go a long way in helping you improve your credit score.
Stay on top of debt
Now that you have a credit card, you'll have to make sure that you pay your balance every month. This applies to your other accounts as well. Good budgeting will help. If you sometimes forget to make your payments, you could always schedule your debit orders to go off on a chosen date each month. If you have unfortunately accumulated a lot of debt, consider a Consolidation Loan to manage your repayments.
Check your credit score regularly
Your credit score directly impacts the outcome of your credit application, so it's a good idea to check it regularly and make sure that it's the best it can be. Don't forget to check for inaccuracies on your credit report and fix them. Not only do errors negatively affect your credit score, but they could be a sign of identity fraud. You can download your Credit Report for free here.
Keep working on yourself!
Remember, you can't achieve financial wellness overnight. It takes time, practise, and a bit of patience.