Deep, deep dive
How do I improve my credit score?
Here are a few ways:
- Have a credit history: You may consider getting a credit card so you can show a history of prompt repayments and low utilisation rates. Even if you only use RM30 a month, it helps build a track record.
- Pay all your bills and repayments on time, or in advance: This includes postpaid mobile subscriptions. For example, if you have more than RM150 outstanding with your phone company for more than 6 months, they may create a “trade reference” that shows what you owe.
- Pay-off as much as you are able to: Pay what you can if you are really unable to settle the full outstanding amount. Then, reduce your expenses so you can pay more the next month.
- Only apply for new credit cards or loans if you really need them: Getting a credit card with a low credit limit would prevent your spending from getting out of control.
- Use less of your credit limit: The higher your outstanding credit relative to your credit limit, the lower your credit score will be. In general, if your total monthly debt repayments are over 60% of your monthly income, future loan applications may be difficult