How to improve your credit history

Maintaining a Good Credit Score: Why It Matters and How to Improve It

A good credit score can make a significant difference when applying for loans, credit cards, mortgages, and mobile contracts. However, understanding how to improve your credit history can be challenging.

At Boshhh, we’re here to guide you on why prioritising your credit score is essential, how you can improve it, and the benefits of securing mobile contracts for bad credit.

Why Should I Improve My Credit History?

Your credit score is a numerical representation of your likelihood to repay loans on time. Different credit file providers use various scoring models. Our credit partner, Equifax, categorises scores as follows:

• Poor: 300-579

• Fair: 580-699

• Good: 670-739

• Very Good: 740-799

• Excellent: 800-850

Higher credit scores generally increase your chances of being approved for credit terms, including mortgages and car loans. Keeping an eye on your score and taking appropriate measures to boost it can provide greater financial freedom.

Benefits of Improving Your Credit Score

Improving your credit score offers numerous advantages, including:

1. Increased Chances of Loan Approval:
   Good credit scores enhance your likelihood of getting approved for loans, whether you're purchasing a house, car, or simply seeking a credit card. A strong score allows you to shop around for the best offers rather than being limited to specific providers.

2. Lower Interest Rates:
   A better credit history can lead to significantly lower interest rates, sometimes even 0%. This makes borrowing more affordable over time.

3. Higher Credit Limits:
   A low credit score may limit the amount you can borrow. By taking steps to improve your score, you can qualify for larger loans, helping you achieve your financial goals faster.

4. Better Insurance Rates:
   If you pay for insurance in monthly instalments, your credit score affects the interest charged. A higher score can result in lower interest rates.

How to Improve Your Credit History

Improving your credit history takes time, and changes won't happen overnight. Depending on your current score and the steps you take, it may take a few months for improvements to show. Here are our top tips:

1. Register on the Electoral Roll:
   Registering at your current address confirms your residence and provides lenders with essential information. This can speed up your applications and improve access to services like insurance and legal aid.

2. Show Financial Responsibility:
   Consistently making regular payments on time demonstrates to lenders that you can manage your finances responsibly. Aim to keep your credit utilisation below 30% to show that you're not overly reliant on loans.

3. Understand Your Credit Report:
   Familiarising yourself with your credit file helps you identify any inaccuracies or fraudulent activity. Regular monitoring can prevent potential issues and allow you to report mistakes to your credit provider.

4. Reduce Unused Credit:
   Lenders favour individuals with mature accounts. Successfully managing multiple credit accounts over time can enhance your credit score.

5. Consider a Mobile Contract for Bad Credit:
   Specialist mobile contracts exist specifically to help improve your credit score. Boshhh was founded to support those facing financial challenges due to their credit history. Our SIM-only contracts enable you to build a better financial future while enjoying the benefits of a premium phone network.

How to Maintain Your Credit Score

Once you've improved your credit score, how do you maintain it? Here are some tips:

1. Avoid Relying on Borrowing:
   While loans and credit can be tempting, relying on them can lead to debt accumulation. Be cautious about how much you borrow and ensure you can manage repayments.

2. Limit Credit Applications:
   Applying for too much credit in a short period can signal to lenders that you are overly reliant on credit. Space out applications—ideally, no more than once every three months—to prevent negative impacts on your credit report.

3. Stay Vigilant Against Fraud:
   Fraudulent activity is increasingly common. Regularly check your credit score and report any unexpected changes or unauthorised applications to your lender and credit report providers.

Learn More with Boshhh

Looking for more tips on navigating the world of credit scores? Explore the credit report guides on our blog for insights on achieving financial freedom and earning the trust of banks and lenders.

If you're struggling to improve your credit score, consider our mobile contracts for bad credit. Our plans have a proven track record of helping customers elevate their credit scores from poor to excellent. Get started today, or contact us for more information!