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Monitor and Improve your Credit Score

Stay on top of your credit health

How to Improve your Credit Rating?

Improving your Credit Rating Takes Time

Just as your physical health depends on your lifestyle choices, your credit rating is a reflection of your credit habits. To keep your credit score in good shape, it is important to check your credit report on a regular basis. However, improving your credit rating is not something that happens overnight, and requires commitment and perseverance. In addition to breaking bad credit habits, regularly checking your credit report is essential if you are looking to improve your credit rating.

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According to data from TransUnion1 collected over a 12-month period, less than 15% of people who did not check their credit report saw an improvement in their credit rating, versus 34% of people who continuously monitored their credit report over a 12-month period. 

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Among people with Near Prime rating (Grade D, E and F), 57% saw an improvement in their credit score. 

 

To stay on top of your credit report and identify steps for improving your credit rating, TransUnion recommends monitoring your credit report for at least 6-12 months.

Want to Improve your Credit Rating?

In addition to improving your employment prospects, a good credit rating can also help you to obtain a lower interest rate (Annual Percentage Rate, APR) when you take out a loan.

According to data from TransUnion1, on average, borrowers with Grade A receive an APR of 4.8%, whereas interest rates for borrowers with a Near Prime rating (Grade D, E or F) can be as high as 10.7% to 19%.

Your credit rating can therefore have a decisive impact on your life plans. However, just like your physical health, improving your credit score is not something that can be achieved overnight – to see an improvement, you’ll need to monitor your credit rating continuously over the medium to long term.

Monitor your Credit Report for at least 6-12 months

Checking your credit report on a regular basis helps you to keep track of your credit rating and ensure that it’s in good shape for your next big financial decision – be that purchasing a property, starting a new business, moving overseas, or finding a new job. At TransUnion, we recommend monitoring your credit report for at least 6 to 12 months so that you can keep an eye on your score and identify steps for improving your rating.

 RECOMMENDATIONS
Good credit rating (Grade A, B or C) 
  • Grade A: Check your credit report on a regular basis to stay on top of your credit health. 
  • Grade B or C: Check your credit history and identify steps for improving your rating. Monitor changes in your score for at least 6 months. 
Unfavourable credit rating  
(Grade D or below) 
  • Identify steps for improving your credit rating, and monitor changes in your credit score for at least 6-12 months.
  • If you have an unfavourable rating, you may need to monitor your score for a longer period, until you notice an improvement. 

What to Look for When Monitoring your Credit Report?

We recommend taking the following steps over a 6 to 12 months period:

 

  1. Check your credit report at the same time each month and identify the habits that impact on your rating.
    • For example, if you checked your credit report on the 3rd of the previous month and then perform another check on 23rd of this month, there may be a significant difference in your score.
    • 【Read More: How is your Credit Score calculated?


  2. If you're planning to make a big purchase on your credit card:
    • Ask your bank to increase your credit limit, and avoid maxing out your credit card (stay within 30-50% of your limit).


  3. Use TransUnion’s credit monitoring tools, including:
    • Log in your TransUnion account and go to “Score Trending” to monitor monthly changes in your credit score.
    • Use Debt Analysis function to ascertain your borrowing and repayment ability and plan your finances.
    • Before applying for or cancelling a credit product, use the Credit Score Calculator to find out how your decision will affect your credit score.


  4. Check your credit records (such as borrowing and repayment records) on a regular basis and promptly report for error correction.


  5. Correct outdated or incorrect personal information in public records.

Act Now to Improve your Credit Score!

Improving your credit score takes time and requires perseverance. The earlier you start, the better, so monitor your score now and plan your path to a better financial future!

1Remarks: From 1 September 2020 to 31 August 2021.

 

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