How to Boost Your Credit Score in Your Late-Twenties

Stop making hard inquiries

Hard inquiries with financial lenders are bad for your credit score, especially if your application is rejected. It’s always best to opt for a soft search approach as this does not leave a mark on your credit history. Before you get to the point of applying, it’s also a good idea to look into your credit history and credit score so you know what to expect from a financial deal from a lender.

Consider multiple accounts

When it comes to your finances, it’s always best to have two or more accounts open. This proves to a lender that you are financially responsible. There are a number of ways to do this depending on your financial circumstances (e.g. you can pay one set of bills from one account and run any day-to-day expenses through the other). It’s important to remember that this doesn’t mean spending more money but spending more evenly across multiple accounts.

Managing your utilisation

It’s simple, spread your payments across your accounts. There are a few financial sites that will recommend a strict utilisation percentage (usually between 15 and 30%). However, a good rule of thumb is simply to use each account evenly. Spreading your payments and costs onto a number of cards proves to your lenders that you know how to manage your money.

Keep old accounts open

A good amount of your credit score is determined by your credit history. So, whilst it might be satisfying to close an account as soon as it’s paid off, it’s actually better to keep it open in many cases.

Punctuality is key

This is something that cannot be stressed enough, no matter how old you are. Punctuality is one of the main things that financial lenders look for because it proves your ability to make repayments. Our advice is to get everything on Direct Debit so you’re never late with a payment.

Your late twenties are a time to get yourself financially stable. It’s time to shake off the old bad habits from your early twenties and begin to manage your money properly. Take our advice on board and you’ll be off to a flying start!