How to improve your credit history

Maintaining a good credit score makes all the difference when applying for loans, credit cards, mortgages, and mobile contracts. 

While there are simple steps you can take in order to improve your credit history, it can be hard to know where to begin. 

The Boshhh team is here to tell you more. Learn all about why you should prioritise your credit score, how to improve it, and the benefits of getting mobile contracts for bad credit. 

Why should I improve my credit history?

A credit score is a number given to individuals that represents the likelihood they’ll pay back a loan on time. 

Different credit file providers have varying scoring models. Our credit partner Equifax is as follows: 

• Poor - 300-579

• Fair - 580-699

• Good - 670-739

• Very good - 740-799

• Excellent - 800-850

Higher credit scores generally mean you’re more likely to be accepted for credit terms (including mortgages and car loans). Keeping an eye on your score and taking the appropriate measures to boost it allows more financial freedom. 

Benefits of improving your credit score 

Improving your credit score offers numerous advantages: increased chances of loan approval, lower interest rates, higher credit limits, and better insurance rates.

Increased chance of loan approval 

Whether you want to borrow money to buy a house or car, or simply want a credit card to pay back the amount when you can afford it, good credit scores make approval more likely. 

It also gives you the freedom to shop around for the best offer, rather than being restricted to certain credit providers and types. 

Lower interest rates 

Improving your credit history allows you to benefit from much lower interest rates (even 0%) from your chosen provider, making borrowing (of any sort) a lot cheaper in the long run. 

Higher credit limits 

Having a low credit score can prevent you from borrowing your chosen amount. Taking the necessary steps to improve it will give you a better chance of borrowing larger sums, allowing you to achieve your financial goals much quicker. 

Better insurance rates   

If you choose to pay your insurance in monthly instalments across the year, your credit score will affect the interest charges paid. 

The higher your score, the lower the interest!

How to improve your credit history 

Improving your credit history won’t happen overnight. Depending on your current score and the steps you take, it will be at least a few months before changes start to take effect. 

Here are our top tips on how to improve your credit history: 

1. Register for the electoral roll 

Registering at your current address proves where you live, recording your details on your report. This gives potential lenders your name and address, which doesn’t just make applications faster, but also gives you easier access to insurance, legal, and accounting services. 

2. Show financial responsibility 

Making regular payments on time shows lenders you’ll pay back whatever you borrow, and can manage your income responsibly. 

You can also show financial responsibility by keeping your credit utilisation to a maximum of 30%. This shows lenders you aren’t reliant on loans, increasing your credit score. 

3. Get to know your credit report 

By getting familiar with your credit file, you’ll be able to notice when things pop up that aren’t supposed to be there. 

Here, you can monitor any fraudulent activity, and report any mistakes you spot to your credit file provider. 

4. Reduce unused credit 

Credit lenders reward those with mature accounts. 

Showing lenders you can successfully manage more than one credit account at once, over a long period of time, helps to boost your credit score. 

5. Get a mobile contract for bad credit 

Did you know there are specialist mobile contracts you can get with the sole purpose of improving your credit score?

Boshhh was founded to help those that are being held back financially because of their credit history. Applying for a SIM-only contract with us helps you build a better financial future while enjoying the perks of a premium phone network. 

How to maintain your credit score 

So, you’ve got your credit score to a favourable number - but how can you maintain it?

1. Don’t let borrowing be your first option 

While loans and credit options are appealing, it’s important not to rely on them. Taking out too many loans can often lead to your eyes being bigger than your belly and forgetting you have to pay it all off at some point, which can lead to trouble with mounting debt. 

2. Try not to apply for too many credit solutions 

Applying for too much credit too quickly makes lenders think you’re overly reliant on credit as a payment option. Too many hard checks on your credit history will look bad, so try and space them out as much as you can - no more than every 3 months is recommended - to avoid negative effects on your credit report. 

3. Be careful!

Fraudulent activity is more prevalent than ever, so it’s vital to stay vigilant online and when checking your credit score. If you see a surge in the amount you owe, or applications you didn’t make, it’s time to get in touch with your lender and credit report providers to report it, as this can hinder all the progress you’ve made with your credit score. 

Learn more with Boshhh 

Looking for more tips on how to navigate the world of credit scores?

Check out the credit report guides on our blog for more information on how to gain financial freedom and the trust of banks and lenders. 

If you’re currently struggling to improve your credit score, why not check out our mobile contracts for bad credit? Proven to take your credit score from poor to excellent, get started today or contact us for more information.