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How to improve your family’s credit score

How to improve your family’s credit score

How to improve your family’s credit score (image: Pixabay)

Whatever stage of life that your family’s at, ensuring that your financial foundations are sound will help to give you peace of mind and confidence that you’re able to work towards your aspirations.

Before you take the step of applying for a new loan or credit facility, it’s important to understand your current credit position – what will financial providers see when they run a credit check to assess your application?

If your initial research suggests that your credit score could do with some strengthening, then there’s a number of steps you can take to help improve the likelihood of future loan applications being approved.

Clean up your credit report

There’s a number of free credit report services that will provide you with a copy of the report that financial institutions would receive as part of your loan application process. A quick search on ‘fix my credit‘ will present you with plenty of options. It’s important to review this and ensure that there aren’t any errors or discrepancies.

If you do identify an error that could be negatively impacting your credit score, you can request that your credit history be amended.

Ensure that you’re meeting your current obligations

The best time to start improving your credit history is right now. Make sure that you are paying your bills on time, that you’re not getting behind with any loan or credit card payments, and that you’re not applying for credit unless you absolutely need it.

Reduce your overall debt levels

Your total amount of debt owed will have an impact on your credit score. Look at whether you can consolidate your credit cards and any unsecured loans into a single loan. This will help you simplify your repayments, potentially reduce your fees and charges, and help you start to reduce your overall debt levels.