8 Proven Ways To Improve Your Credit Score Fast (Boost Your Rating In 30 Days!)

Matt | Personal Finance

8 Proven Ways To Improve Your Credit Score Fast #creditrating #financialfreedom #creditrepair   Are you struggling with your credit score? In this video, I’m going to show you 8 actionable steps that can help you improve your credit score quickly - within 30 days! Whether you're working to recover after late payments or just want to boost your credit rating to qualify for better loan terms, these tips will help you achieve that.   I’ll explain the factors that influence your credit score, what makes up a perfect score, and how to work with the major credit agencies like Experian, Equifax, and TransUnion. With a higher credit score, you can save money on mortgages, loans, and credit cards. Let’s get your credit on track for success!

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00:00if you want to improve your credit score then this is the video for you i'm going to talk about

00:05eight ways that you can try to improve your score and how this can help you get the best deals for

00:10credit cards mortgages and personal loans if you're new to this channel i'm matt i'm a finance

00:16consultant i've spent over eight years working for one of the top consulting companies in london

00:21i now run my own company and on this channel i talk all things personal finance so let's get

00:27going firstly what is a credit score a credit score is a sign of how healthy your credit report is

00:33and lenders will use it to check whether you're a reliable borrower it can impact whether you get

00:38accepted for loans mortgages and credit cards most of the top credit reference agencies equifax

00:45experian and transunion have four or five categories for credit scores ranging from excellent to poor

00:51each credit reference agency uses a different numerical scale to determine your credit score

00:56however you'll probably fall into one category with all of the agencies since they all base your

01:02score on your financial history experience scores range from 0 to 999 with categories very poor and

01:09poor below a score of 720 a credit score between 721 and 880 is considered fair a score of 881 to 960

01:20is considered good is considered excellent equifax scores range from 0 to 1000 a score below 438 is poor

01:32a score between 439 and 530 is fair a score between 531 and 670 is good between 671 and 810 is very good

01:45and a credit score above 811 is excellent and finally transunion scores range from 0 to 710 with very poor

01:53and poor below a score of 565 a credit score of 566 to 603 is fair 604 to 627 is good and 628 to 710 is

02:07excellent so why is your credit score important your credit score plays a role in determining the interest

02:13rate and payment terms on mortgages and loans and lenders will base the interest rate they charge on

02:19how risky they view as a borrower so while it may be possible to get a mortgage with bad debt you're

02:25typically better off improving your score before you apply for a mortgage to qualify for good terms

02:30this could save you thousands of pounds over the lifetime of the loan you may be thinking well i know

02:36what my credit score is but how can i improve it i've got eight ways to try to help you to do this

02:41firstly try to make sure that you always pay your bills on time as it shows on your records and

02:46demonstrates that you're able to make payments when you're supposed to lenders will use this

02:51information to assess your reliability to make payments to them on loans missing payments having

02:57account sent to collections or filing bankruptcy could hurt your scores and having a late payment

03:03history can stay on your records for a number of years i know paying bills on time can be hard

03:08particularly with the recent high inflation and increases to living expenses a couple of tips

03:14for you one is to set up direct debits for a few days after payday so you have the money in your bank

03:20account for when the direct debits are being taken out for your regular monthly bills and if you do have

03:25any late payments speak to your lender or provider and agree the plan to settle the payments over a

03:30fixed time period so it doesn't show as late on your records anymore the second way to improve your

03:36credit score is to review your credit utilization this is the percentage of your overall available

03:42credit limit that you're using and the typical guidance is to keep this at or below 20 to 30

03:48so if your credit limit is 2 000 pounds per month that would mean spending no more than 400 to 600 pounds

03:55each month on credit to calculate this for your own personal circumstances take your total available

04:01credit per month and divide it by the amount you spend on credit each month if you're unable to

04:06reduce the amount of spend you make on credit then one way to improve your utilization score is to ask

04:12for a higher credit limit from your credit provider importantly you don't have to use it but it can help

04:17to reduce your percentage credit utilization third is the length of credit history that you have this

04:22includes the average age of all your credit accounts and the age of your oldest and newest accounts

04:28showing a good history over a long period of time with a bank shows stability that doesn't mean you

04:34can't look for the best bank account to move to but think about keeping a long-term account and then

04:39having another account which you switch to the best interest rate every so often that way you don't

04:44lose the stability of having an account over the long term the fourth point is to check your credit

04:49report for inconsistencies you can view your credit report with experian equifax and transunion ensure the

04:55history is accurate and consistent and shows things like the correct property addresses for the correct

05:00periods of your life and review the information and look for any mistakes or errors this is important

05:05because lenders will use this information to cross check to any application that you make for credit

05:10and if there are discrepancies in the information this can result in your application being declined

05:16reviewing your credit report can also in the worst case identify fraud if someone's taken out credit in

05:22your name without you knowing about it i had this a few years ago where a credit card had been taken

05:27out in my name by someone else and i work with the credit report agencies to correct this information

05:33and remove the incorrect credit card from my records the other thing to watch out for is linked accounts

05:38so if you've ever taken out anything with another person such as a joint account and you no longer need

05:43that account then it's important to correct this information and give a notice of disassociation

05:49as if the person you had a joint account with had a bad credit score this could also impact your credit

05:54score as well the fifth point is the credit mix that you have and to use a credit card responsibly

06:00this considers whether you're managing both installment accounts such as car loans personal loans or

06:05mortgages and also revolving accounts such as credit cards showing that you can manage both types

06:11of accounts responsibly generally helps your credit score there are lots of benefits of using credit cards

06:17such as protection on your purchases and cashback but make sure you can pay it off each month and only

06:22spend within your means for example on day-to-day food shopping and transport this will help to build

06:28up your credit score the sixth point is to avoid too many hard searches and to space out applications

06:34where possible hard searches are performed when you apply for credit and the company that you've applied

06:39to will check your credit report for example it could be an application for a mortgage a credit card

06:44or even a mobile phone if you have too many hard searches it can impact your credit score

06:50experium recommends no more than one or two hard searches every few months so try to plan out any

06:56applications you intend to make so you can spread them out over a longer period of time and not have

07:01them all in one go the seventh point is to register to vote it's very simple to do as long as you're

07:07eligible to vote in the uk and the reason why lenders look at this is that it confirms who you say you are

07:13and that you live at the address that you say that you do often if you're applying for a mortgage this

07:18will be one of the criteria flagged if you've not registered to vote so if you've not done it already

07:24then i recommend doing it now and finally number eight try experium boost to see if it can help to

07:29improve your credit score experium boost takes into account regular payments like your monthly utility

07:35bills your mobile phone contract or tv subscriptions like netflix and it can help to show that you're able to

07:42manage your money not all lenders will take it into account but it's an extra step which could get you

07:47those additional points that move you into the best credit score band possible the key is to be aware of

07:53your credit score and the things that you can do to improve it particularly before taking out a loan

07:57or line of credit so you can get the best deal possible i hope this video has been helpful feel free

08:03to leave any questions in the comments and give the video a like and a subscribe and i'll see you next time

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