Pages Navigation Menu

Everything Personal Finance

How to raise your credit score

Debt can drive people to the edge, and to some people it can feel like it is an ongoing burden that will never end. For people with bad credit score due to unpaid bills or bad financial choices in the past, debt can be the cause of stress and anxiety in their lives. However, there are options for people with negative credit scores, that can alleviate the financial strain they are under by refinancing their current debts and helping them to gain a more secure credit rating. If you are suffering from a bad credit score, have a look at some of the options to help repair your credit score.


Reduce the amount you owe

This may sound like the most obvious, but a lot of people don’t see this to be a contributing factor to their debts. Reducing the amount owed on your debts can have a far more satisfying result than increasing your credit score. If you owe a substantially large debt, reducing the amount owed may seem impossible at times, but any extra contribution counts, no matter how big or small it is. By making extra repayments, you are increasing your chances of raising your credit score.

Pay bills on time

Paying your bills on time can have a massive input on your credit score. Although it can often be easy to forget about those bills that need paying, it is recommended to pay before the due date to decrease the risk of a negative credit score. The timing of your payments is recorded by the company and added to your credit score as either a negative or a positive. Late payments can have a negative impact on your score by reducing it. Unpaid bills that remain unpaid for extended period of times will get sent to a bill collector. This is something you must avoid if you want to increase your credit score.

Consolidating Debt

Consolidating multiple debts can help assist with improving your credit score. When you consolidate debt loans with bad credit you are given an opportunity to redeem yourself to the credit agency. As long as you pay your bills on time and ensure you are continually reducing the amount you owe, over time your credit score will increase through the continuity of payments.

Borrow more

Some providers offer unsecured loans to people with bad credit ratings.  Interest rates are higher than standard loans due to the risk of providing a loan to someone with bad credit, but it may still assist with your rating if the repayments are paid on time. It will help repair your rating, and provide you with an opportunity to redeem yourself with major lenders by using the money to pay off previous debts.


Although having a low credit score can be a burden to begin with, by following these few simple tricks over time you can raise that score. However, it is important to note the risk of using credit cards before having paid off prior debts can actually affect your credit score in a negative way, so be careful and always speak to a professional financial advisor before making any decisions on how to settle your debt.