1. Knowledge is power: check your credit report regularly (it's free!)

Think of your credit report as a financial report card. It details your credit history, including open accounts and any outstanding debts and then provides detail on how good you have been at honouring these debt commitments. Regularly reviewing your credit report helps you understand your overall credit health by providing a clear picture of your accounts, balances, and payment history. Moreover, it shows you the information that lenders see about you, every time that you apply for a credit product.

By checking your credit report regularly, you can catch any errors or inaccuracies that might be dragging down your score. Understanding your personal credit information, empowers you to make informed decisions about borrowing and managing your money effectively. It will also help you identify if you have been a victim of identity theft.

2. Tackle outstanding debts strategically

Outstanding debts can weigh heavily on your credit score. Instead of feeling overwhelmed, create a plan to tackle them strategically: prioritise paying off high-interest debts first while consistently making at least minimum payments on others. Remember, even small, consistent payments show responsible credit management and build a positive credit history. Don't forget to celebrate your progress along the way – it keeps you motivated and reinforces good financial habits.

3. Break the cycle of credit dependency

Using credit to cover daily expenses can quickly trap you in a cycle of debt. Break free by building healthy spending habits. Start by creating a realistic budget that tracks your income and expenses, ensuring your spending aligns with your financial goals. Before each purchase, pause and ask yourself: “Is this a need or want?" This simple question curbs impulse buys and keeps you on budget. Consider using a budgeting app, such as the one offered on Up, that helps categorise all your expenses and automatically populate your credit commitments. At the click of a button on your phone, you’ll be able to track your budget regularly over time.

4. Dispute Inaccuracies and Protect Your Credit Health

Your credit report is a dynamic record that reflects your financial history, and like any document, it's susceptible to errors. Safeguarding your credit health requires a proactive approach. Regularly review your report for inaccuracies, such as outdated information or unfamiliar accounts. If you spot any errors, promptly dispute them with the relevant credit bureau or lender and provide supporting documentation. Remember, legitimate credit repair is a process, so be wary of companies promising instant fixes – those are often scams.