It’s Time to Talk About Credit

True or False? – ‘If you take out a credit card and don’t use it, your credit score will increase’

The answer is at the end…

When’s the last time you checked your credit score?

If it wasn’t ‘this month’, do yourself a favour and check it today. If you fear it may be low, then that’s your motivation to keep on reading. 

Your credit score reflects how responsible you are when it comes to borrowing money and making repayments, both on time and in full.

A good credit score could help you reach your goals. These goals could include taking out a phone contract, financing a car, or even taking out a mortgage.  In all cases, your credit will be checked.

A ‘good’ credit score can vary in number, between platforms. For example, on Experian, a good credit score is anything around the 700’s and up. On ClearsScore, a good credit score is anything around the 400’s and up.

You may find that you have a good credit score on one platform and not the other. In my experience, Experian is a great platform. It’s nice and easy to raise any disputes and most things are clear and easy to understand. BUT don’t forget to check other credit agencies to make sure everything is consistent across the board. 

A few ways you can improve your credit score:

1. Make sure you are on the electoral role – this adds to your credibility and shows that you are a real person (it’s also good to vote)
2. Get a household bill put into your name – make sure this bill is paid on time and in full
3. Take out a credit card – only do this once you are well informed, you know what you are doing, and you are responsible
4. Do not ignore defaults and CCJ’s – seek professional advice when it comes to defaults and CCJ’s, but do not ignore them

Many people just focus on the score; however, it is important to check your credit report. Your credit report will detail why your score is going up, down or staying the same. It is also a good idea to check your credit report to make sure your personal details are correct and that you are not a victim of identity theft or fraud.

Your credit score is important, even if you have a lot of cash. If you haven’t checked your credit score and report recently, make sure you do it today! It’s time to stop ignoring your credit file – take action today!

Answer: False! If you do not use the credit card, this will not show that you are a responsible borrower.