We all know that TikTok isn’t just about dance challenges and lip-syncing. It can also be a goldmine for money hacks, including tips and tricks to improve your credit score. But how do you know which advice you can trust? Loqbox takes a look at the latest TikTok credit score trends and ideas to bring you 9 of the best tricks to raise your credit score fast.
What is a credit score and why would I care?
Before diving into tricks to increase credit scores, let’s break down what they are and why you might want to improve them.
What is a credit score?
Simply put, your credit score is a numerical summary of your creditworthiness. When you apply for loans, credit cards or mortgages, lenders often check your credit report to see how much of a risk it might be to lend you money.
Why are credit scores important?
Generally, the higher your credit score the better chance you have of getting credit applications accepted. Not only that but you’re also more likely to get better deals when it comes to credit limits and interest rates. Saving even a couple of percent of interest on something big like a mortgage or car finance can save you thousands over time. So it’s not to be overlooked.
It’s not just credit card and mortgage lenders that check your credit scores. It could also be checked for things like phone contracts, rental agreements and even some employment contracts.
How are credit scores calculated?
In the UK, credit scores are calculated by the top three credit reference agencies (CRAs): Experian, Equifax and TransUnion. You can check your credit scores with all three CRAs, for free and without impacting them, using these recommended services:
- ClearScore (uses Equifax data)*
- Credit Club (uses Experian data)
- Intuit Credit Karma (uses TransUnion data)
* For transparency, if you decide to sign up to ClearScore using this link, we’ll receive a small commission.
9 tricks to boost credit scores from TikTok</H2>
Okay, so here we go: nine TikTok-approved tricks to improve credit scores that we think are worth looking at:
1. Register to vote
One of the quickest and easiest credit repair tricks is to make sure that you’re on the electoral roll. The electoral roll is a list of everybody who is registered to vote in the UK. It is used by potential lenders to establish that you are who you say you are and you live where you say you live.
Getting onto the electoral roll, also known as the electoral register, is easy – you can do it online in just a few minutes. It also has a positive impact on your credit score. It helps if you have been at the same address for several years, as it shows stability, but even if you’ve moved around, registering yourself to your current address could still give your credit score a boost.
2. Check for errors on your credit report
Another of the easiest tricks to raise credit scores is to regularly review your credit reports with all three of the Credit Reference Agencies for any errors. CRAs will try to keep everything up to date, but it’s easy for mistakes to creep into your credit report. Errors can unnecessarily impact your credit score, and fixing them can help it grow.
Common errors could be anything from having ex-partners financially connected to your account who shouldn’t be, to having missed payment flags that should have been removed. If you’re working hard to improve your credit score, giving it a spring clean can give you a quick and easy boost.
3. Get a credit builder credit card
Of course, one of the best ways to build credit is to use credit. But that’s not always easy to do if you have a “low” credit score and you’re finding it challenging to be accepted for lines of credit. Credit builder credit cards are designed specifically for people with limited credit.
It’s important to use credit builder credit cards (well actually, all credit cards) responsibly. They can be a powerful tool for rebuilding your credit, as lenders view stable and responsible activity on your credit history positively. However, misusing them can negatively impact your credit score. Find out more on how credit cards affect credit scores here.
4. Become an authorised user
If you’re not able to get your own credit card there’s still an option available to you. You can become an authorised user on somebody else’s credit card, in other words piggybacking on someone else's good credit habits. You’ll want to make sure that whoever you’re attaching to has good credit so you can benefit from them.
It’s also important that the other person can trust you too, as your credit reports will be linked by the card use. So while you can benefit from their responsible credit use, they can also have their credit scores impacted by your activity if you misuse it.
5. Negotiate higher credit limits
Increasing your credit limits can positively impact your credit score. This is because of something called a “credit utilisation ratio”, which relates to how much of your total available credit you’re using. Having access to lots of credit and not using it all can make you appear financially stable and responsible.
Generally, it’s a good idea to use no more than 10-30% of your available credit. That will put your credit utilisation ratio in a good place. Of course, having access to more credit can make spending a little more tempting. But if you can manage it responsibly, consider negotiating with your credit card issuer for a limit increase to give your credit score a nudge up.
6. Pay your bills in full and on time
Consistently paying all of your bills, particularly any credit repayments, in full and on time helps to grow and maintain your credit score. It shows you’re able to handle your credit responsibly. But the opposite is also true. Missing payments can negatively impact your credit score. You can find out more about how missed payments affect your credit score here.
7. Set up direct debits for your regular payments
Connected to the previous tip, set up your bills and repayments as automatic direct debit payments to help you avoid forgetting. Missing payments can hurt your credit score so why leave it up to human error? An extra hack is to set your repayment dates to payday so that the money moves before you’re tempted to spend it!
8. Don’t apply for lots of credit all at once
Many credit applications trigger a hard credit check. Hard checks are an inquiry on your credit report, and they can temporarily lower your score. To maintain a positive credit history, aim to be strategic in your credit applications and avoid unnecessary impacts. Applying for credit cautiously can help lenders view you as a financially responsible person.
To help, you can find out more about hard vs soft credit checks here.
9. Don’t withdraw cash with your credit card
Taking cash out with your credit card is known as a cash advance. They can come with high fees and interest, and are often considered to be poor money management by lenders. This is especially true if you make several cash withdrawals in a short space of time. Avoid using your credit card at cash machines to keep your credit score healthy.
What other boosting credit score tricks are there?
While these 9 tricks to boost credit scores are great, they’re by no means the only things that you can do to help them grow. In fact, one of the best tricks to raise credit scores fast is to get started with Loqbox. For £2.50 per week you can boost your credit score by up to 300 points in just three months.
Don’t forget to check here for more tricks to improve credit scores.
Improvements to your credit score are not guaranteed.