15 Ways To Improve Your Credit Score Before The New Year And Start 2021 On A Good Financial Foundation

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The end of another year inevitably comes with a period of introspection and reflection on events that have touched and shaped our lives over the past 12 months.

Without a doubt, 2020 has been a challenge for everyone due to the continued impact of the Coronavirus pandemic, both personally and financially.

Leave was something most people in the UK had never heard of until March, let alone imagining they would be in for weeks, if not months at a time – in mid-December, 1.2 million employers have requested support from the UK government job retention program for some 9.9 million employees since April.

The pandemic has also forced most of us to reassess our finances and dive deeper into our spending and with many Brits hoping to improve their credit scores in the new year, personal finance experts, Ocean financing, have created a how-to guide highlighting 15 ways to improve it before the start of 2021.

15 Actions You Can Take To Instantly Improve Your Credit Score

If you’re looking to improve your credit score for the start of the New Year, here are some quick wins:

  • If you are renting, ask your landlord to sign up for the Rent Swap Initiative to show that 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 increase your score by approximately 50 points.

  • If you can’t register to vote, get proof of residency to add to your credit report.

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  • Make sure all of your direct debits are paid on time.

  • Do not withdraw cash on a credit cardbecause you will have to pay interest charges.

  • Think twice before agreeing to be financially bound to those with bad credit.

  • Separate yourself 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 frugal and live within your means so that 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.

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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