If you’ve landed on this page but you’re not quite sure what a credit score is, it might be worth checking out our ‘what is a credit score?’ guide before you read on.
If you’re already clued up on what a credit score is and why it’s important, then hopefully this guide will give you a few actionable tips to help improve that all-important credit score.
#1 - Register your address
Make sure you're registered on the electoral roll with your current address, even if you're sharing a flat or staying with your folks. It helps show where you live to lenders.
#2 - Pay your bills on time
Paying your bills on time and in full can help make you look like a responsible borrower to lenders. Keeping your old accounts in good standing can also help your credit score, but watch out for those unused credit cards!
#3 - Keep your credit usage low
The percentage of your credit limit that you're using is called your credit utilisation. Keeping it below 30% is ideal, and can help increase your credit score. Keep an eye on your utilisation across all of your active credit cards.
#4 - Pay off your biggest balance first
If you've got more than one credit card with a balance, focus on the one with the highest balance first to help reduce your credit utilisation ratio.
#5 - Become an authorised user on someone else's credit card
If someone in your family has a better credit score than you, you might be able to hop on their credit card as an authorised user. This can actually help your credit score, especially if the card has a long history of good standing, on-time payments, and low usage.
#6 - Check your credit report for errors
Even little mistakes can cause big problems for your credit score. Check your report to make sure everything is accurate and up-to-date. If there's an error, flag it with your credit provider and get your records amended.
#7 - Watch out for fraudsters
Unfortunately, it happens all too often. Fraudsters can try to take out credit in your name, so make sure to keep an eye on your credit file for anything suspicious. If you spot a credit application on your file that wasn’t you, get it reported or it could tarnish your score.
#8 - Staying put can be a positive sign
Lenders like stability, so try not to move home too much if you can help it. Moving home frequently could be misinterpreted as you having issues with paying rent. If you do have to move, try to keep your credit history in good standing.
#9 - Keep your old accounts open
Having multiple credit accounts that you've managed well over time can help show lenders that you're a responsible borrower. Keeping your old accounts open can also help boost your credit score. Periodically spending on old credit cards will reduce the chances of your credit limit being reduced, or even having your account closed for being dormant. Closing an account will impact your credit utilisation and could negatively impact your credit score.
#10 - Try a credit builder card
If you want to improve your credit score, a credit builder card could be the way to go. Just make sure to only spend what you need to and pay it off on time to avoid getting hit with interest. The downside with credit builder cards is that they typically offer low credit limits and higher interest rates.
See If You’re Eligible for a Yonder Credit Card Today
Ready to level up your credit game? Check if you're eligible for a Yonder credit card by clicking the 'see if I'm eligible' button at the top of the page. We'll ask a few simple questions to see if you're a good fit.
Plus, with tons of cool ways to earn and use points, Yonder is a great choice for building up your credit score and setting yourself up for a bright financial future.