Personal Finance

How is a Healthy Credit Score Linked to a Healthy Life?

While the health of your credit score isn’t quite as important as the health of your body, it’s still something that follows you around throughout your life, like it or not. And when you think about it, your financial health and personal health are pretty interlinked – we all get stressed about money in one way or another from time to time, whether it’s missing a deadline for a credit card payment or worrying about losing our job.

One way to reduce stress over money is to find out more about your credit score, including ways to improve or maintain it. We all need some financial breathing space from time to time – and knowing that there’s available funds when you need them can take a weight off your mind.

Finding out your credit score

A number of firms in the UK collect information on your credit score, including Equifax and Experian. At most times, you can take out a free trial with these companies to find out your score, then choose to continue by paying a subscription. It’s always at least worth finding out your score, especially if you’ve little or no idea on what it would be.

Improving your credit score

When it comes to leading a healthier lifestyle, it’s usually about organising things a little better, whether that’s finding more time for exercise or cooking healthier meals. Some of the same principles apply with finance. For example, when you move house, don’t forget to add yourself to the electoral roll at your new address, as this is one of the first things that checked during the credit score process.

If you’ve got outstanding balances on a number of cards, moving them all to one card with a more favourable rate using a balance transfer could end up saving you money, especially if you find a lengthy 0% Balance Transfer introductory deal.

The benefits of a better credit score

The better your credit score, the more attractive you’ll appear to lenders, meaning you’ll have access to the widest range of products, for example when the time comes to compare credit cards. The same is also true when you’re applying for credit elsewhere, whether that’s buying a new sofa or taking out a mobile phone contract.

Ultimately, the better your credit score, the more relaxed you should feel about your access to credit when you need it – and like staying healthy, the more effort you put in, the more you get out.

This is a guest post by Mike Brains who blogs for FinancialFacts.org.

Stacie Vaughan

Stacie is the mom of two girls and lives in Ontario, Canada. She enjoys cooking/baking, photography, reading, DIY and is fueled by lots of coffee!

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