Your credit score is a number based on your history of borrowing and repayments that helps lender work out how safe you are to lend to. You must aware that, having a poor credit history or a low credit score can seriously impact your financially.

Although a low credit score has always been a worry, it’s not impossible to recover. There are some strategies that could help you build up your credit score including:

Pay off your bills/repayments in time

This may seem obvious, but a lot of people may overlook their bills. Pay off all your bills, and make your repayments in time, without fail and see how your credit score builds up and improves as you go!

Think twice before applying for credit cards

Don’t go overboard with too many credit cards, and only apply for credit when you need it. This practice would save you from unnecessary burden of repayments and would build a good credit score.

Utilize your credit generously

Make sure that you are always within your credit limit. When you utilize your credit generously, you are contributing to improve your credit score.

Pay off any existing defaults

You must pay off the unpaid arrears if any, such as your loan and credit card repayments, or utility bills which are overdue for more than 60 days to get back on track.

Showcase your old debts

If you have paid off some old debts like a car loan or a personal loan, with a track record of timely repayments, it is a great addition to your report. When you showcase your paid off debts, it adds on to your ability that being able to pay back what you owe.