What is a credit score?
A credit score is a single number, usually between 300 and 850, that enables financial institutions to get a sense of your credit history and to work out whether you’re a viable person to lend money to.
Does everyone have a credit score?
If you’re over the age of 18 and have applied for credit, it’s likely that you’ll have a credit profile and credit score with a credit reporting body such as Equifax.
What can affect my credit score?
There are lots of things that can affect your credit score, including your payment history, how much credit you have available and how many active credit accounts you have.
How can I improve my credit score?
If you’re not happy with your current credit score, these tips should help you give it a boost.
- Check your score- Most credit reporting bodies will tell you where and how you need to improve.
- Pay your bills on time -This is the single most effective way to improve your credit score.
- Don’t borrow more than you can handle -There’s nothing more damaging than defaulting on your loan or credit cards.
Remember, even if you’ve signed up to one or more credit score websites, it’s still a good idea to request a free copy of your credit report each year. This will help you understand how your score has been calculated and to ensure your information is correct.