Tips To Keep Your Credit Score Healthy!

27 September 2020

Tips To Keep Your Credit Score Healthy


Your credit score is important for many of your financial goals! Looking to buy your first car, securing your first mortgage to get on the property ladder, looking at a new job, applying for a loan to start up your business?... all of these goals will require a good credit score. 


Want to know more about what your credit score is? Check out our article ‘What Is a Credit Score & Why Does It Matter?’.


1. Always pay your Utility bills on time


That's right! It really is important to keep on track with all your utility repayments. This means any regular bills that you have going out of your account including telephone, water, gas, electricity, WiFi etc.

Showing you can regularly make your utility payments shows that you are responsible, and after all that is what a credit score shows to the financial world… that you are financially responsible and can be trusted to pay back the money you borrow.


2. Keep on track with your repayments


If you have used financial services and have regular repayments leaving your account, keep track of when they are all due to go out and be sure there is enough money in your account for the payment/s to successfully go through.


Failure to make a repayment to some lenders can damage your credit score, showing on your file as a ‘default’ payment on your credit file. A default stays on your credit file for five years, so it is really important to avoid these completely. If you think you might miss a payment, or are having trouble sticking to your schedule, get in touch with your provider so that they can help you.


At Save My Bacon, we understand that missed payments can happen from time to time by accident, so if you miss a payment with us our friendly customer repayments team will be in touch to try and understand what happened! They will then help you reschedule a payment that works for you, no stress attached! As long as you keep in touch with us throughout your loan repayment schedule there is no way you can hurt your score with us. 


3. Don’t inquire for too many loans in a short space of time


You heard it!... actually just applying for multiple loans in a short space of time can negatively impact your credit score. Every time you apply for credit, the lender may send an enquiry to the credit-bureaus to obtain your credit file. Because the bureaus recognise this enquiry for credit, if it happens repeatedly over a short period it can have a negative impact on your score, as they recognise this as potentially irresponsible borrowing. 

So if you are looking for a loan, make sure to shop around before choosing the best one for you, check the calculators and expected repayment amounts... you might be surprised! Ideally you want one loan that will be enough to cover all the costs you need it for, not multiple loans with multiple repayments. Want to see how much a $2000 loan costs? Check out our loan comparison article, and how we can help you consolidate your high-cost debt


4. Choose your lender wisely - not all lenders help grow your credit score


Choosing the right lender when you need money can have a positive or negative impact on your credit score. Some lenders don’t care about your credit score and would prefer to make more money off late fees than taking the time to inform you that your missed payment could damage your score.

Save My Bacon has what is called ‘positive credit reporting’ with kiwi credit-bureau Centrix so that when you keep on track with your payments, and our friendly repayments team will help make sure you do, repaying back your loan will actually grow your credit score! 


5. Actively build your credit score


If you are wanting to improve your credit score, you can take out lines of credit that will contribute to growing your score. It pays to have open lines of credit that are up to date through which you make regular payments. These can include credit cards, debit cards and loans.

Want to know more? Check out our article on 'How To Build Your Credit Score'.