Making changes to your mobile contract is a good way to save money and improve the convenience that it offers in your day to day life.
However, you might not realize that when your deal is reassessed or you want to move to a different network provider to change numbers, your credit score can come into play.
Having a higher credit score increases your chances of approval, so what steps can you take to get it shipshape pronto?
Avoid applying for multiple credit cards
Using a credit card responsibly will improve your financial standing, but do credit applications hurt credit score figures?
The unfortunate answer is yes.
As such, it’s best to resist the temptation to apply for more than one credit card, particularly in a short timeframe.
Doing so will result in credit checks appearing on your history, and worse still you could see your score actually drop if one of your applications is denied.
A wiser move is to pay off just one credit card regularly, as doing so will show lenders and other organizations that you can be responsible with your money, rather than over extending yourself unnecessarily. Moreover, if you’re planning to renovate your home in Singapore, considering Renovation Loans In Singapore can provide you with the financial support needed to undertake your desired home improvements while managing your expenses effectively
Pay down debts
Credit cards are a common form of debt, but if you have any other loans to your name then paying them off promptly will work wonders for your credit score.
Again, there’s a narrow path to tread here, because you need to have some history of using credit in the past to demonstrate that you’re a good prospect for future lending.
Keeping up with repayments, and even overpaying where possible to wrap up the loan sooner, will bolster your credit score. That way you can justify borrowing for home renovations or anything else.
Retain legacy accounts
Another factor which lenders weigh up when assessing the worthiness of potential customers is how long they’ve had credit accounts open on average.
Because of this, keeping older accounts open regardless of whether you are using them or not is a savvy step.
If you do decide to migrate to a new credit account to take advantage of better rates or incentives, don’t ditch the old one. Pay it off and keep it dormant, because credit score calculations will take note of this.
Delve into debt consolidation
Lots of us struggle with debt from time to time, and often the issue in play is the amount of interest we’re charged, rather than the size of the amount owed itself.
Consolidating multiple debts into a single product from just one provider can solve this to a degree. It means you’ll either have lower monthly repayments to tackle, or be able to pay off the total sooner. Having a side hustle to earn extra cash also helps in this regard.
Check your credit score regularly
You don’t have to cross your fingers and hope for the best when changing phone numbers, applying for loans or doing anything else that involves a credit check. By looking into your score beforehand, you can gauge where you’re at and where you need to be to enhance your chances of approval.
Better yet, if you use a service which provides both a score and an in-depth credit report, you can see not only how you’re doing, but also why your score might be lower than expected.
Final thoughts
Burying your head in the sand is a bad way to handle your finances. With an awareness of your credit score, you don’t have to be so intimidated or frightened of facing the facts.
The more information you have available, the easier it is to make changes and improvements which actually matter, rather than being left in the dark where money is concerned.
