Five ways that you can build up a solid credit score

As such, it is certainly worth taking the following steps to improve your credit score.

A credit score is essentially a number that lenders will look at to determine how likely a borrower is to pay back their loans on time. The higher the credit score, the more likely it is that you will be accepted, with better interest rates made available to you. If you would like to check your credit score via a credit reference agency or bureau, you can do so for free (in the US) or for just £2 (in the UK.

This is the first step to making sure that you have a good track record to show to potential lenders. The best ways to build it out is through credit-builder loans or secured credit cards - as well as mixing different types of accounts.

As long as you pay back the loans on time, then this is great proof of reliability.

Payment history is a fundamental factor to building up a solid credit score. As such, it is certainly worth keeping track of a long history of loans, credit card balances and pay dates.

Make sure that you have set up standing orders or automatic payments.

It is free to obtain a copy of your current credit report. There are a number of free online sites that can be used for this purpose.

It is worth checking for any errors that may be impacting your credit score. If you pick up on any, then notify your credit agency immediately with proof and supporting documents.

It is important to make sure that you stay within your credit card limit, and try not to use more than 30% of it. This is because using too much can bring down your credit score.

Hard credit requests refer to requests that will leave a mark on your credit history. This typically applies to credit cards, payday loans and other types of lines of credit. Doing so can lower your credit score and thus impact future applications and available interest rates.

There is no definitive timescale for the length of time it can take to build up a solid credit score. It is important to first find out what might be bringing down your score, and then set priorities on how these factors can be addressed.

For instance, one missed payment can typically be overridden fairly quickly by a number of recurrent payments made on time afterwards. However, a growing number of frequent missed payments can mean that it will take longer for your credit score to recover.

It is important to finally persevere. If you are really struggling with building up your credit score, it is worth consulting a financial professional or credit management professionals who may be able to help.