Your Credit Score, what is it all about?
We all, as individuals, have a credit score, but it is a number that most of us know little about, so what does it do and what can you do to improve it?
Firstly, what is your credit score? It is a score that you get depending on how you manage your money and more importantly, if you are looking to obtain borrowing at some point, you are going to need a good credit score. Typically, the better the credit score the more options are open to you as the higher the score, the better the borrower is the way the lender looks at it. So if you have a higher credit score, you are likely to get lower interest rates and more lenders wanting to lend you money.
Secondly, what actually impacts your credit score? Well, if you do not have any credit, typically you will have a low credit score because you haven't 'proven' that you can pay credit back, so even a small amount on a credit card that you repay every month will increase your credit score. Obviously things like not paying your bills on time and having debts registered against your name for non-payment will really harm your credit score but oddly enough things like being on the Voters/Electoral Roll and paying your car/home insurance monthly rather than annually will increase your credit score.
There are many different calculations that are made by the credit scoring agencies which can impact your credit score positively or negatively depending on what it is you are doing with your money and you can find out more by being at one of the Fortem Financial Education Seminars, part of which specifically deals with how to improve your credit score. Contact us on info@fortemfinancialeducation or 01256 345630 for more information.