How to Improve Your Credit Score

Pay on time, every time

Payment history is consistently described as one of the most influential parts of a credit score. A single missed payment can be reported and linger on the record. Setting up auto-pay for at least the minimum due, and reminders a few days before each date, removes most of the risk.

Keep utilisation low

Credit utilisation is your revolving balance as a share of your available limit. Lower is generally viewed more favourably. Ways people manage it include paying the card down before the statement date, spreading spending across cards, or requesting a higher limit and not using the extra room.

Check your report for errors

Mistakes happen: a closed account shown as open, a payment marked late that was on time, or an account that is not yours (a possible sign of fraud). You are generally entitled to review your report and raise a dispute with the bureau, which must investigate. Correcting an error can remove an unfair drag on the score.

Give it time

Length of credit history and a stable pattern of behaviour matter, and neither can be rushed. A few habits help the clock work in your favour:

• Keep older accounts open unless there is a good reason to close them.
• Apply for new credit only when you need it, to limit hard enquiries.
• Maintain a sensible mix of credit rather than many similar accounts opened at once.

Be wary of services promising a guaranteed jump in your score for a fee. Legitimate improvement comes from the record itself changing over time.