A good credit score is vital for financial wellness, but where should you start to achieve your best score? Here are seven practical tips to help you get closer to your target credit rating. 

Step 1 – Know your credit score

Before you can improve your credit score, you need to know your current standing. Get a free credit check and report from us at Finance365 to review your credit history and identify areas that may be negatively impacting your rating. This is your starting point for setting realistic improvement goals.

Step 2 – Pay your bills on time

Your payment history is the single largest factor influencing your credit score, accounting for approximately 35% of it. Late or missed payments can quickly lower your score, so make it a habit to pay all your bills, including credit cards, loans and things like water and electricity, on or before their due dates.

Best score tip: You could see positive impacts on your credit score within 1–6 months of consistent on-time payments. Set reminders or automate your payments to avoid missing deadlines. 

Step 3 – Keep your credit utilisation low

Credit utilisation measures how much of your available credit you’re using. For example, if you have a credit card with a R10,000 limit and you use R5 000 of it, your credit utilisation rate is 50%. Aim to keep your credit utilisation percentage below this level to demonstrate that you are responsible when it comes to your credit management. 

There are two sides to the coin of managing your credit utilisation well. For one, reducing your credit balances can improve your score. Secondly, if you have a strong credit history, you could consider requesting higher credit limits on your existing accounts because this can lower your utilisation ratio.

Step 4 – Avoid opening too many accounts

Keep in mind that applying for multiple credit accounts in a short period can lower your score and make you appear financially stressed. Each application you make results in a ‘hard inquiry’ on your credit record, which temporarily reduces your score. 

But remember that getting your credit score or report from Finance365 is a ‘soft enquiry’ which means that no matter how many times you check your score or get a report from us, it won’t affect your score in any way. What’s also really helpful are free alerts that are also provided by our platform that let you know whenever there are any changes to your score.

Good to know: Hard inquiries stay on your report for two years but have less impact after 6–12 months. Apply for credit only when it’s absolutely necessary and space out your applications by at least six months. 

Step 5 – Keep your old accounts open

The length of your credit history is another big factor in the calculation of your score. Even if you no longer use an account, keeping it open contributes to a longer average credit age, which lenders view positively. 

Consider closing accounts only if they have high fees or pose a financial risk—also keep them open if you can resist the temptation to go on overspending sprees using their limit.

Step 6 – Avoid defaults and legal judgements

Defaults and judgements can severely impact your credit score for years. If you’re struggling with debt, be sure to negotiate a payment plan with your credit provider to avoid legal action. Proactively communicating with them can open opportunities for restructuring repayment plans and while it may feel overwhelming, it is hugely important to have these conversations!

Step 7 – Check your credit report regularly

Don’t discount the importance of this step. Review your credit report regularly for inaccuracies or negative items, such as late payments or accounts in arrears. Errors on your report can drag down your score, so don’t be shy and If you spot inaccuracies, dispute them with the credit bureau to have them corrected.

Remember: Any enquiry made to Finance365 is considered to be a ‘soft enquiry’. This means that it doesn’t impact your credit score and so, you can check your score and get your credit reports as often as you like, and for free. 

Remember that when it comes to knowing how to boost your credit score, consistency from you is one of your most powerful tools. Keep in mind too that improving your credit score is a journey and not an overnight fix. By focusing on regular check-ins with your credit score and positive credit habits like paying bills on time and keeping credit utilisation low, you can see meaningful improvements over time. 

Small, deliberate actions can make a big difference in your financial future! 
Take the next step and check your credit score today—and don’t forget that you can also tap into Finance365’s free alert service which can help you stay on top of things as you take action to make your credit score the best it can be.

Take the next step by checking your credit score today! Don’t forget to leverage Finance365’s free alert service to stay on top of changes while you improve it. 

Whether you’re saving for a new car, planning for a dream home or gearing up for a once-in-a-lifetime vacation, Finance365’s unlimited “soft” credit checks won’t impact your score and can help you reach your goals faster.

Start your journey toward better credit right now. Take control with Finance365 and open the door to the future you’ve always wanted.