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Today’s post comes courtesy of Henry Thomason, Savings and Sangria reader and freelance financial writer. He’s got some genius tips to help you improve your credit score. So pay close attention to this one! 

How to Improve Your Credit Score

If you start to get a little dizzy when thinking about your money, you’re not alone. Last night’s fun can be this morning’s woe. What’s worse is that your next bank statement charts the whole story, from start to finish. While a daring attitude might feel like good living, regularly splashing the cash isn’t advisable; especially if you’re just getting by.

Your credit score serves as a financial footprint. If it chronicles the path of a walking disaster, you can be denied access to loans, mortgages and more. Banks, investors, even family and friends will steer clear from you if you have a knack for money misery. Consequently, here are a few tips on how to improve your credit score.

Spend Wisely

There is such a thing as silly spending. If you’re old enough to manage your money, then you’re also too old to be grunting ‘YOLO’ every time you see something that takes your fancy. Stow away your cash and cards; your money isn’t to be wasted.

If you’re responsible with your funds, your credit score will improve by default. For example, paying bills on time shows the right people that you’re accountable. If you waste money to the detriment of others, you’re a bad investment. It’s really that simple. If you mess up enough, folks will get fed up and avoid you. That’s the branding that plagues those with bad credit.

Consequently, while you may often part ways with your funds for a good time, this is all just a series of hollow victories. Treat yourself by all means, but don’t live a life your bank account doesn’t allow. If you want more spending money, get a better paying job.

Repay Loans

If you take out a loan, you need a good reason to do so. You must also be confident of a solid return so that you can pay it back within the allotted time. Loans work best as a one-time boost, giving you that extra edge if you’re starting a new business, expanding an old one, or pursuing some other financial opportunity.

If you’re taking out loans you can’t pay back, then bad credit will shove it’s boot up your backside in good time. Still, if you’ve got bad credit, take out a few small loans and pay them off fast. This way, you’re building and maintaining a reputation for reliability. All in all, repaying loans can rebuild your credit history and overall standing with the banks.

New Bank Account

If you don’t have the courage to stomach your own mistakes, jump ship. This isn’t a question of honour or loyalty; your financial situation is serious, and if it’s in jeopardy then every avenue should be explored. It’s not the same as covering up your mistakes; it’s more moving your messy situation to a better-equipped space.

For example, Think Money offer a no credit check bank account, something of a life-saving service for those on the bad credit battlefield. Where regular banks will turn you away if you have a poor financial history, companies like Think Money won’t. It’s a much needed second chance for you. They’ll dust you off, empathise with your situation, and give you the means to get going again.