However, with a bunch of myths floating around, it’s hard to understand what actually improves your credit score and what could jeopardise it.
Whether you’re looking for a discount on your home loan or to secure new finance for yourself or your business, knowing your credit score and actively trying to improve it will shape your financial future for the better.
1. It’s too difficult or expensive to check your credit score
2. Requesting your credit report can hurt your credit score
3. Having a substantial income or bank balance equals a good credit score
4. Having no debts means you have a good credit score
5. The amount of credit card debt you have affects your credit score
Improving your credit score ultimately comes down to proving that you’re a responsible borrower that can make repayments on time. Be active in ensuring that you borrow within your means and never miss a due date. Hopefully, the next time you check your credit score, you’ll see a positive difference.