November 11, 2024
Credit score tips on lasting financial well-being
Learn the importance of tracking and improving your credit score with Boshhh Mobile - the credit building mobile phone network
Financial well-being is all to do with having a healthy relationship with your money.
Often defined as your ability to make the most of your money, deal with unexpected expenses, and have a plan for the future (in the form of savings and investments).
Read on to learn more about financial well-being, how it’s linked to your credit score, and ways to improve your relationship with money.
Why is financial well-being important?
Financial stress has severe effects on mental health, relationships, and even physical health, making it essential for people to prioritise their relationship with their finances.
Financial well-being isn’t just beneficial for individuals – it’s important for businesses and the economy alike.
Achieving financial well-being means reducing money-related stress and developing a clearer understanding of where your money is going and when.
Financial well-being provides stability, contributing to general satisfaction and security.
Does credit score affect financial well-being?
Constantly checking your credit score and worrying about its ups and downs can have a bigger effect on your mental health than you may think.
A higher credit score opens you up to greater financial opportunities – like loans and finance agreements – making money management much easier. However, a score on the lower end of the scale can limit these opportunities and increase financial strain.
How to improve your financial well-being
Improving financial well-being is a goal many people have, but where do you start?
Here are the top 5 ways to better your relationship with money:
Budget your income
If you’re the type of person to leave all your monthly income in one pot, it’s time to make some changes.
Start by listing your monthly expenses – including bills, insurance, and credit card payments – and work out how much you have to spend.
With the remaining money, add up what you need for day-to-day life – travel, food, petrol – and you’ll then be left with money you can use to spend or save.
Learn more about your credit report
Getting to grips with your credit report is vital.
It gives you an idea of what potential lenders see, and highlights areas you can improve to build your score up.
Understanding your report helps you make informed financial decisions and take control of your financial future.
Boost your credit score
Once you’ve got to know your report, it’s time to give it a boost.
Be aware that your score won’t go from poor to excellent overnight – take small steps and be patient.
Take a look at our blog on How to improve your credit history for expert tips.
Build savings and invest wisely
Think of your savings as a financial cushion.
You can split your savings into things like holiday funds and car expenses, general savings, and ISAs to save for a future home.
Set up standing orders based on your budget (that you’ve worked out during step 1) and set some money aside each month.
Watch it grow and only use it when you need to. Be aware some savings accounts have restrictions on how many times you can take money out in a 12-month period, as well as how much you can put in each month.
Reduce debt
Paying off debt greatly improves your credit score.
Not having to lose a chunk of your monthly income to credit card payments can also improve your financial well-being. You don't have to worry about restricting yourself and can focus on spending your money on what matters most.
What does a good credit score mean?
Improving your credit score can:
Give you access to better loan and credit options
Allow you to access lower interest rates
Opens up better housing options
Increases employability
Better insurance premiums
Improves overall financial well-being, building confidence and flexibility
Join Boshhh to achieve financial well-being
If you’re looking for further ways of improving your credit score, consider Boshhh – the credit-building mobile phone network.
Get your hands on a SIM-only contract with no credit check and watch your score skyrocket with timely, monthly payments.
And, with our supporting app, you’ll receive personalised tips on how to further build your financial well-being.
