Episode #6 – How To Safely Build Your Credit Score

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It might seem like a reaaaaaaaaally boring topic, but your credit score is actually pretty handy to be aware of. Your credit score essentially tells banks and other lenders how much to trust you. If you have a poor score, they’re either refuse to lend to you, or they’ll charge you more to lend you money. And I think this sucks!

Get your own back by getting your score as good as it can be. I have a few tips in this video. Excuse the editing – it’s not my forte, but you’ll get the gist!

How To Improve Your Credit Score 

Your credit score is an indicator of how you have been doing with your money over the past 7 YEARS. The other “top-level” indicators are net worthliabilities and assets. If you’re not tracking these, then set yourself up a spreadsheet, or a piece of paper and a pen, and start doing it. The satisfaction is IMMENSE when you see how your net worth and credit score improves over time. There will be bumps in the road sure, but overall, you want the figure to be growing the majority of the time. 6-monthly or 12-monthly is ok, or you can do what I do and track it every month (although I may be a little obsessed).

So how do we improve our credit scores? In my research for this topic, I also came across an app called LOQBOX.

Who Is LOQBOX?

They are a company who want to help people improve their credit score WITHOUT having to open a credit card. The idea is that you save money into a savings account that to a credit scoring agency, looks like you’re paying off a debt with LOQBOX. You keep up the payments for 12 months, and at the end, open up one of their affiliate’s regular savings accounts or an ISA to get all your savings back free of charge, OR if you just want the money back, you pay a fee of £30 to do so.

To make sure you don’t damage your score, you MUST keep up with the savings payments. If you miss one, the credit score companies think you’ve defaulted, so you end up with a dent in your score. LOQBOX give you a way out by asking you to cancel free of charge so that you don’t worsen your score. Your credit score will take a dent to begin with, because it looks like you’re taking out a loan, when we know that actually you’re just saving money. It will gradually improve as you “pay off” LOQBOX.

In fact, treating all your savings goals like a “debt” is actually a very good idea – its a way of encouraging yourself to keep saving.

Overall I think this is an interesting and useful concept. Many people don’t use credit for buying things, so never build up a score. This only becomes a problem when they then come to buy a house or other big purchase. I really hate the fact that people have to go into debt in order to build their score – it just seems topsy turvy to me!

Anyway – enjoy the video! Let me know what you think, and don’t forget to join my Facebook group!

Here’s The Video:

Here’s The Audio Version:

 

Resources Mentioned:

Check Your Credit Score For Free With Noddle

The Money Advice Service – Improve Your Credit Rating

This Is Money Article – What To Do If I Am Declined?

The £1000 Challenge!  https://thefemalemoneydoctor.lpages.co/the-ps1000-challenge/

LoqBox – https://www.loqbox.co.uk/shortcodes/faq/using code: FB84KX (affiliate link)

 

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