How to Rebuild Your Credit Score

Essential steps to rebuilding your credit score

Have past financial mistakes impacted your credit score? Rebuilding it can be challenging, but it’s a journey worth taking. While improvement won’t happen overnight, taking proactive steps today can set you on a path to a healthier credit future.

Here are eight actionable steps to guide you in restoring your credit score:

1. Review Your Credit Reports

Start by understanding your current credit situation. Obtain a free credit report from Equifax and identify areas that need improvement. Look for high credit card balances or unpaid collections and make a plan to address these issues.

2. Pay Bills on Time

Timely payments are crucial for a strong credit score. Catch up on overdue bills and create a budget to ensure you stay on track with future payments. Consistency is key to rebuilding your credit.

3. Lower Your Credit Utilisation Ratio

Aim for a credit utilisation ratio below 30% by managing your credit card balances. Consider making extra payments and exploring alternative payment methods to avoid accumulating more debt.

4. Seek Help with Debt

If managing your debt feels overwhelming, consider consulting a credit counselor. They can assist you in developing a debt management plan, making your unsecured debts more manageable, and potentially negotiating lower interest rates.

5. Become an Authorised User

Ask a family member or friend with a strong credit history to add you as an authorised user on their credit card. This can positively impact your credit score. However, avoid purchasing trade lines from strangers, as this can lead to fraud.

6. Get a Cosigner

Applying for credit with a creditworthy cosigner can improve your chances of approval and help you secure better terms. Ensure that your cosigner understands their responsibilities and how it may affect their credit.

7. Only Apply for Necessary Credit

While having multiple credit accounts can help rebuild your credit, avoid unnecessary applications. Each credit inquiry can negatively impact your score, so only apply when it’s truly needed.

8. Consider a Secured Credit Card

Look into secured credit cards that require a security deposit for approval. Choose cards with no annual fees and additional benefits. After demonstrating responsible use, some issuers may refund your deposit and convert your card to unsecured.

Bonus Tip: Boost Your Credit with Boshhh Mobile: Incorporate a Boshhh Mobile SIM-only contract into your credit rebuilding strategy. Use our app, powered by Equifax, designed to help all our members improve their credit scores.