How to Improve your credit score
Credit scores are important but how can you improve yours? Read on to learn how.
The nmoni difference:
- No upfront credit checks
- We have a panel of over 20 lenders
- apply in 10 minutes
- 4.9 Google rating
Your credit score is really important and can have a significant impact on not only your ability to get a loan, but the rate you can qualify for (if you need more information on what a credit score is read our article titled “what is a credit score?”).
A key question you will no doubt have is “How can I improve my credit score?”
Here is a list of actions you can take:
Overdue rent or utilities bills can stay on your credit file for a up to 5 years so make sure you pay these on time. Set up direct debit or automatic payments via your credit card. If you do run into difficulties call up the company that you owe money to and see if you can work out a payment plan.
When you apply for a loan direct to a lender you actually can hurt your credit score. This is because an application direct to a lender will often trigger what’s called a hard credit check.
Hard credit checks are a formal credit inquiry and therefore impact your credit score.
If you apply for a loan with lots of lenders you run the risk of seriously hurting your credit rating.
If you need a loan it’s best to start with someone who can provide guidance on which lenders are more likely to accept your current situation. We can help find you a personal or car loan from our panel of over 20 lenders. All without hurting your credit score. Start by filling in our application form now. It only takes 10 minutes!
Also beware of buy now pater later schemes. Some credit agencies are now including these types of loans in the calculation of your credit score. Pay these off as soon as possible. Better still, avoid them altogether.
Make sure you never miss a monthly repayment on a loan. This includes your credit card bill. Missing these repayments will end up hurting your credit score and therefore your ability to get another loan at a competitive rate.
You can check your credit score for free every 3 months (see our article “What is a credit score?”). Make sure the information in your credit report is accurate. You’d hate an admin error to hurt your credit score!
Having lots of credit cards can seriously hurt your ability to get a loan. Reduce your credit cards to the minimum you need and also reduce your credit card limits to make yourself look like a better risk to lenders.
If you’d like us to find you a personal or car loan from our panel of over 20 lenders fill in our application form now. It only takes 10 minutes!
Importantly, at nmoni we do not do an upfront credit check when assessing your loan application. We do what’s called a soft credit check. Soft credit checks are not a credit application. This means they do not come up as a credit inquiry
Here are 5 ways to improve your credit score: 1. Pay your bills on time, 2. Don’t apply for a loan at multiple lenders, 3. Pay your loans off on time, 4. Check your credit score is accurate, 5. Reduce the amount of credit cards.
A credit score is a number generated by credit reporting agencies that provides an indication of your credit worthiness. A credit score is really important as they can significantly affect your ability to get a loan and how much that loan will cost (the interest rate and other chargers).
Read our article "What is a credit score" for more information.
The exact formula is not disclosed by credit reporting agencies however there are several key factors that they consider like the amount of money you’ve borrowed, the number of loan applications you have made, your repayment history and any defaults, bankruptcies, debt collection agency agreements or short-term credit you have.
Read our article "What is a credit score" for more information.
The higher your credit score the better your chance of getting a loan and the better chance you have of getting a lower interest rate. This is because if you have a really good credit score you are a lower risk to a lender and therefore are a good chance of paying back the loan. Conversely, if you have a lower credit score a lender may classify you as having higher risk and therefore charge a higher interest rate.
In addition to your credit score, other factors like overall banking conduct (such as dishonours and payday loans) can also impact the interest rate you are offered.
At nmoni we do not perform upfront credit checks. This means that we can review your application and give you a guide as to whether a lender will give you a loan before a credit check is completed. Our process reduces the number of credit checks required and therefore helps you avoid hurting your credit score. Start the process today by completing our fast application.
At nmoni we review your situation and only apply for loans with lenders we believe will approve your application and provide the right rate. This will reduce the impact on your credit score while also saving you a lot of time and hassle.
This is really important as you don’t want to get a loan with a lender that charges high fees and has high exit costs. We only deal with reputable lenders so we can ensure you avoid any of these potential potholes. Also, make sure the lender or broker you use has high Google ratings (we happen to have a 4.9 out of 5 Google rating!).
The good news is that there are lenders who work with clients looking for a car loan with bad credit. Importantly, these lenders often change their lending criteria so it’s important to work with a broker who can help place you with a lender who is more likely to fund your dream car purchase. Please complete our online car loan application and we will check our panel of over 20 lenders to see who can help with your situation.
We take a broader view of your application than just your credit score. We do this by reviewing your overall credit profile to get a clearer picture of your financial position. We do this without performing an upfront credit check (we do a soft check that does not impact your credit score). Importantly, we also provide credit feedback if we cannot assist you with a loan right now.
Secured loans are amongst the easiest loans to get. That's where you put up something of value in exchange for funding. Car, boat and caravan loans are types of secured loans and means the lender has some security over the loan.
We can review your situation and provide feedback on why you are being declined without hurting your credit score. Apply now and we'll provide you valuable feedback.
There are lenders we work with that specialise in clients with lower credit scores. The best way to find out is to complete our online application and we’ll put our technology and/or one of our credit analysts to work to review your file and provide feedback. We can provide valuable information on your options without affecting your credit rating.
After searching for a car loan I found nmoni. They are very helpful… keep you up to date at the progress of your loan. And made settlement a breeze. Thank you Chris and Michelle you are both amazing.
Jodie Bayliss
Outstanding service. Above and beyond and service you just can’t get from a big bank or finance company.The team at nmoni have been incredibly helpful in assisting me with obtaining business finance for my new vehicle. Every step of the process they have been super responsive and highly efficient. I would highly recommend their service!
Ben Duncan
I just want to say thank you to Chris from NMONI for helping me get my car finance.
Highly recommended bunch! As they go above and beyond to help you achieve the best possible outcome. They are very prompt with communicating and provide excellent customer service.
Kevin Reyes
Omg with my credit rating I thought I’d never get credit again but these guys gave me the chance and now my credit rating is rising these guys work magic
Josh Carson
Nmoni is such a great lending company, Christina is the best of best broker, person and very understanding. Great customer service and very helpful any time, she actually answers the phone unlike other company employers who do not care. She Actually cares and Christina does everything in her power to help and solve your issues. Thank you Nmoni and thank you Christina.
Mirjana Markovic
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Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstance before acting on it, and where appropriate, seek professional advice from a finance professional such as an adviser
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