A good credit score can not only attract better interest rates and loan premiums, but it can also be a deciding factor in a landing a dream job, mortgage renewal, or rental application. A poor credit score can leave you with no access to the loans you need, higher interest rates, and higher deposit rates with rental and utility companies.


In order to understand how you can improve your credit score, let’s take a look at some the ways you could be unintentionally harming your credit. One such way that you could be harming your credit score through unpaid bills and fines which can be reported to credit bureaus and remain on your record for years. Similarly, using more than a third of your available credit can look irresponsible to creditors even when paid in full each month.

Another habit that is harmful to your credit is simply not checking on your credit score enough. Checking your credit score report on a regular basis can help you spot errors from inaccurate reporting to identity theft before they do major damage to your report. Luckily, certain major credit bureaus such as Annual Credit Report can help you check your report annually for free.


Even with dedication, your credit score won’t improve overnight. There are, however, a variety of long-term financial habits that you can adopt in order to reach your dream credit score.

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  • Apply for a credit card. A secured credit card is one in which you pay a small deposit and have a credit limited tied to the deposit amount.
  • Pay everything on time. From bills, loans, citations and more, pay everything on time to keep yourself in good standing. Take extra caution to pay outstanding bills. Use payment reminders or set up automatic payments in order to keep your finances in check and prevent delinquent loans that will show up on your report.
  • Regularly check your credit score reports. The earlier you spot and report inaccuracies, the easier they will be to solve. Take the time to dispute any mistakes you find.
  • If you are having trouble with your finances, meet with a professional. They can educate you on your finances and help you move towards a more balanced financial future.
  • Don’t close all of your credit accounts. While this may seem like a good idea, it will, in fact, reduce your total borrowing ability.

Improving your score begins with understanding the factors that affect your credit score. With time and healthy financial habits, you could be well on your way to improving the state of your finances. For more information on accessing loans, personal and business banking services, and more, visit Kensington Banks today.