How can I improve my credit score?

Improving your credit score in Ireland involves managing your financial behaviour responsibly over time. Here are actionable steps to help you boost your credit score:

1. Check Your Credit Report:
   • Obtain a copy of your credit report from the Central Credit Register (CCR).
   • Review your report for any inaccuracies or errors and dispute them if necessary.
2. Pay Your Bills on Time:
   • Timely Payments: Ensure you pay loans, credit cards, and utility bills on time, as payment history is a key factor in your credit score.
   • Direct Debits: Set up automatic payments to avoid missing due dates.
3. Reduce Your Debt:
   • Lower Credit Utilisation: Aim to use less than 30% of your available credit limit on credit cards or overdrafts.
   • Pay Off Balances: Prioritise reducing outstanding debts, starting with high-interest accounts.
4. Avoid Frequent Credit Applications:
   • Minimise Hard Inquiries: Each credit application results in a hard inquiry, which can temporarily lower your score.
   • Space Out Applications: Only apply for credit when necessary and wait several months between applications.
5. Keep Credit Accounts Active:
   • Long Credit History: Keeping older accounts open can help improve your score, as a longer credit history is favourable.
   • Use Credit Responsibly: Make small, regular purchases on your credit card and pay them off fully each month.
6. Avoid Defaults and Late Payments:
   • Communicate with Lenders: If you’re struggling to meet payments, talk to your lender about restructuring options rather than missing payments.
   • Resolve Defaults: Clear any outstanding defaults as soon as possible.
7. Build Positive Credit History:
   • If you have no credit history, consider:
     • Opening a credit card with a low limit and using it responsibly.
     • Taking out a small personal loan and repaying it consistently.
8. Register on the Electoral Roll:
   • Ensure you’re registered to vote in Ireland. This helps lenders verify your identity and stability, which can improve your creditworthiness.
9. Monitor Your Progress:
   • Regularly check your credit report to ensure your efforts are reflected and identify any issues promptly.
   • Use free credit score check tools offered by some banks or credit unions, if available.
10. Avoid Joint Accounts with Poor Credit Holders:
    • If you share a financial product with someone who has a poor credit history, it may affect your own score. Be cautious about co-signing or opening joint accounts.

By following these steps and maintaining consistent financial discipline, you’ll gradually improve your credit score and strengthen your overall financial health in Ireland.

Read our blog here to learn how your credit score impacts car finance.