What’s the fastest way to improve a credit score?

1min read
Posted 16 July 21

Want to own your own home one day soon? Odds are you're going to have to take out a mortgage (which is a kind of credit). If your credit score is terrible, lenders might not let you take out any loans.

But there are ways to improve your score (relatively) quickly.


Pay bills back on time.

Few things hurt your credit score as bad as missed or incomplete bill repayments. That's why, if you want to boost your credit score, it's essential to start building a better repayment history sooner rather than later.

Make sure you're taking into account all forms of credit too. To grow your score, you need to make sure you're looking after:

  • Any personal loans
  • Store cards
  • Car payments
  • Mortgage payments
  • Utility and phone bills

By making sure you're paying your bills back on time, you'll be able to avoid high-interest fees on your cards which helps save you money and clear debts faster. 

We recommend setting up automatic repayments, so you don't have to worry about forgetting any bills.

Limit your credit applications.

Every time you apply for credit, your potential lender takes a new credit enquiry out against your record. And every credit check impacts your credit score.

The reason for this is to prevent you from taking out lots of loans you can't pay back. The more credit applications you've got, the more desperate a borrower you seem which tells lenders that you're not in the best position to pay everything back.


Build a budget.

Building a budget means figuring out your income that's all the money you've got coming in each month. Income includes work earnings or anything you receive from Studylink, child support payments, or other deposits.

After that, it's time to subtract your expenses — that's what you spend each month. Add up the essentials first — including rent, groceries, petrol and any debt repayments.

Once that's done, you can allocate some of your remaining money to things you want, like eating out or concert tickets.


Where do I begin?

Begin by checking your credit score and credit report (a breakdown of everything that makes up your score). You'll catch any mistakes (maybe someone you live with has decreased your score because their name is on the identical bills as you).

If you see any errors, like defaults that didn't happen or applications for credit you didn't take out, get in touch with the report's provider quickly to get them sorted. It might just be the fastest way to improve your credit score.


In short.

To improve your credit score, you need to make sure you're paying bills on time and not over-extending your credit applications. 




Info and tools on the Yonda website are used as a guide only and do not constitute financial advice. Use Yonda as a starting point and then seek professional advice.