Lifestyle

LOW credit score? 7 tips to improve your financial health

Here are seven tips to help you improve your credit score in the financial year 2025

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Review Your Credit Reports Regularly

Obtain free copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion) at least once a year.
 

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Pay Your Bills on Time

Set up automatic payments or reminders to pay all bills. Payment history makes up 35% of your credit score, so consistent on-time payments significantly boost your score.

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Reduce Credit Card Balances

Aim to keep your credit card balances below 30% of your credit limit. If possible, pay off the balance in full each month.

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Diversify Your Credit Mix

Use a mix of credit types responsibly, such as credit cards, instalment loans, and mortgages. 
 

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Maintain Older Credit Accounts

Use your oldest credit cards infrequently but keep them open.Older accounts might boost your credit score because 15% of it is based on credit history.

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Avoid Opening Too Many New Accounts Quickly

Be selective about applying for new credit accounts. Each application can result in a hard inquiry on your credit report.

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Pay Down Outstanding Debt

Focus on paying down existing debt rather than moving it around. Prioritize high-interest debt to reduce the overall debt load.

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