In a world where the majority of the transactions we make are done digitally, where we need mortgages to buy a home and were credit is easily available, it is important to be mindful. Looking after your credit score is paramount and not doing so can lead to a host of problems. It is with this in mind that we offer some advice about managing your credit score – the dos and don’ts.

    Your Credit Score Explained

    Lenders use your credit score to see whether or not you qualify for things such as a mortgage, loan or credit card. The information is held on a credit report and includes factors like how much debt you have, how often you apply for credit and public records, for example, any county court judgements you may have against you.

    If you have a good credit score, securing lending shouldn’t cause too many problems. If you have a poor credit score you may struggle to lend money, although there are still some ways of getting financial help.

    Managing Your Credit Score – Dos

    1. If you have a credit card from a company like Ocean Credit Card, do pay off the bill, in full and on time every month. Paying off loans and other debts on time helps to improve your credit score. The same applies to any other type of loan you have – always make payments on time and in full.

    2. Do regularly check for any fraudulent activity on both your bank account and credit card statements. It is surprising how many people never, or only rarely, look at these and fraud committed against you can have a negative impact on your credit score if not dealt with swiftly.

    3. Do ensure that you are registered on the electoral roll and that all of your details are correct on accounts and reports. Mistakes such as a wrong address can make a big difference when it comes to securing credit.

    Managing Your Credit Score – Don’ts

    1. Don’t “max out” your credit card only to find that now the payments are difficult to manage. Missed or even late payments can prove detrimental to your credit score.

    2. Don’t change addresses too frequently. You are more likely to improve your credit score and be able to secure credit if you have lived at the same address for a considerable amount of time.

    3. Don’t take out more credit before any existing loans have been paid off. Based on your income, you can only borrow so much and a refusal will look bad on your credit report.

    Follow this simple advice and you should encounter no problems when it comes to improving your credit score and securing responsible credit.