The end of another year inevitably comes with a period of introspection and reflection on the events that have touched and shaped our lives over the past 12 months.
Without a doubt, 2021 has been another challenge for millions of households across Scotland and the rest of the UK due to the continued impact of the coronavirus pandemic, both personally and financially.
The health crisis has forced most of us to reassess our finances and deepen our spending and, with many people hoping to improve their credit scores in the new year, personal finance experts at Ocean financing have created a how-to guide highlighting 30 ways to make it better for good.
The handy list is split into two parts with 15 actions you can take before December 31, and the 15 you should take after The Bells on January 1.
If you’re looking to make 2022 your year of positive change, saving for a deposit or a new car, looking to pay off your credit card debt, or just want to start saving, hopefully there is. has some quick wins on the list for you to get started.
15 Ways To Instantly Improve Your Credit Score
If you’re looking to improve your credit score before the New Years, here are some quick wins:
If you are renting, ask your landlord to sign up for the Rental Swap Initiative to show you are paying rent on time
Check that your address is correct on old active credit accounts, as this helps the accuracy of future credits
Add a landline number to credit checks to prove stability
Get your name on household bills, even if you are sharing a flat share, as this proves that you are making your payments on time
Register on the electoral roll to boost your score by around 50 points
If you can’t register to vote, get proof of residency to add to your credit report
Make sure all of your direct debits are paid on time.
Do not withdraw cash from a credit card, as you will have to pay interest charges
Think twice before agreeing to be financially bound to those with bad credit
Stand out from previous financial partners by closing joint accounts, mortgages and more
Use calendar reminders to stay on top of your finances so you don’t miss any payments
Pay off your debts with your savings if you have any, as this will save you interest
Be thrifty and live within your means so you are more likely to borrow less
Check your credit report for errors and contact the credit reference agency directly to correct anything you find
Protect yourself against scams because falling victim to them can cause unfair damage to your credit score
15 Ways To Improve Your Credit Health In The New Year
Ocean financing also shared 15 Ways to Improve Your Credit Health with Long-Term Goals for the New Year:
Always stay below 25% of your credit limit so if you have £ 1,000 spend less than £ 250 per month
Do not open a new credit account for six months, and you will increase your credit score by 50 points
Have a variety of different types of credit to prove you’re a reliable borrower – for example, a credit card with a consistent balance and payment amount, a loan, mortgage, and bank card (if all of that is needed)
Use free eligibility checkers to see if you’ll be accepted for credit before you apply
If you are applying for credit, choose your timing carefully – if something is about to expire on your report, it may be worth the wait afterwards.
Keep a fixed address – anything over three years looks better
Get a credit rebuilding card if you have bad credit or none. These come with a low, manageable limit and can help you build your credit score.
If you have high interest debt that you are having trouble paying off, consider a debt consolidation loan.
Avoid Payday Loans If You Want A Mortgage
Avoid using overdrafts – authorized or unauthorized – as they are classified as a form of borrowing
When paying off your credit card, pay more than the minimum if you can
In addition, two payments per month by credit card, as it suggests that you are paying more than the minimum
If you’ve had financial problems in the past, consider a prepaid card where you load the card with cash and use it like a credit card.
Pay off existing debt before applying for more credit if possible
Pay your auto insurance monthly by direct debit instead of a single annual payment
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All of these tips are detailed further in the Ocean Finance online guide. here, which also debunks some credit score myths and lets you test your credit wisdom.
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