The Money Glow

Let’s be real—credit scores can feel like a secret code that only banks understand. But don’t worry, it’s not as complicated as it seems! Your credit score is basically your financial report card, telling lenders how responsible you are with money. A good score can open doors to better interest rates, credit cards, and even rental approvals, while a bad score… well, it can make life harder (and more expensive).

So, what actually affects your credit score, and how can you improve it? Let’s break it down in simple terms!

What Affects Your Credit Score?

💳 Repayment History (35%) – Paying bills and loans on time is crucial. Late payments? 🚨 Big red flag for lenders!

💰 Credit Utilisation (30%) – This is how much of your available credit you’re using. Maxed-out credit cards? Not great. Keeping balances low? Much better!

📅 Credit History Length (15%) – The longer you’ve had credit, the better. Lenders want to see a solid track record.

🆕 New Credit Applications (10%) – Too many applications in a short time can make you look financially risky. Space them out!

🔄 Credit Mix (10%) – Having a mix of credit types (credit cards, personal loans, home loans) can be beneficial, but it’s not a deal-breaker.

How to Improve Your Credit Score

🚀 Pay Bills on Time – This includes credit cards, loans, and even utilities. Set up direct debits or reminders to stay on track.

🚀 Keep Credit Card Balances Low – Aim to use less than 30% of your limit (or under 10% for an excellent score).

🚀 Hold Onto Older Accounts – A longer credit history can work in your favour, so don’t close old accounts unnecessarily.

🚀 Limit Credit Applications – Only apply when needed to avoid multiple hard inquiries on your file.

🚀 Check Your Credit Report – Mistakes happen! Get a free copy of your credit report from agencies like Equifax, Experian, or illion, and dispute any errors.

Final Thoughts

Your credit score isn’t just a number—it’s your financial reputation! AA good credit score can save you thousands in interest rates and make borrowing easier. Stay on top of it, and your future self will thank you! 💰 You don’t need to be a finance expert to build good credit—just follow these simple habits, and you’ll be on your way to a credit score glow-up! 💳✨