Credit score management is not a cinch, but it is not as difficult as you think it is, either. The Central Credit Register, maintained by the Central Bank of Ireland, records your credit information about loans of €500 or more that lenders use to determine your creditworthiness. There is no single score system in Ireland like in some other countries, such as the UK, but it is worth maintaining that your credit information is up to date and accurate. Your credit history is what can make it or break it.
Experts suggest that you pay off your debts on time to avoid a toll on your credit rating. The Credit Register consists of information related to how much debt you owe, your credit utilisation ratio, the number of inquiries, and much more. All these factors influence your credit rating. If your credit history is not bad, you will certainly qualify for affordable deals. However, a subprime credit rating will attract high interest rates.
Fortunately, there are various apps to help you manage your credit score. With the help of these apps, you can easily track your credit information and ensure that your credit score remains good.
Apps for managing your credit score in Ireland
Here are the apps for managing your credit score in Ireland:
1. Credit Karma
Now, keeping tabs on your credit score has become easier with the help of Credit Karma. Credit Karma provides a tailored customer experience by notifying you every time something changes on your credit information. You can immediately control things when they go awry. No ugly surprises anymore at the time of borrowing money.
Credit Karma will allow you to check your score as many times as you want. This provides free service for checking your credit information. This app also offers personalised suggestions for ameliorate your credit rating. The best part about this is that checking your credit score will not affect your credit rating. You can do it as many times as possible, free of cost.
This app is suitable for both Android and iPhone. Users have rated this app 4.7. In addition to offering free credit score service, Credit Karma also helps you obtain the best credit card deal. Credit card deals are provided based on your credit profile. This will help improve your financial life.
2. ClearScore
To keep your credit health good, ClearScore can also help you. It provides you with a full picture related to your credit score, credit report, and credit history. You can easily get to know how a lender will perceive you.
A bad credit history can preclude you from obtaining the most affordable loan deals, but ClearScore will provide you with some valuable tips to ameliorate your credit score.
One of the best advantages of using such apps is that you can easily boost your chances of getting approval for loans with a bad credit history in Ireland. This app will also let you know whether credit searches have been made against you. In addition, the app helps you track your financial information, such as spending and your credit card balance.
ClearCredit also offers some tools that help you figure out how likely you are to be accepted for credit cards, car finance and personal loan applications. You can access videos and articles to know what is impacting your credit score and how you can fix it. You can check your credit score as many times as you want without fearing harming your credit rating. This app has been rated 4.8 and is suitable for both Android and iPhones.
3. Experian
Experian is a credit boost app. It can help you provide access to credit reports, though it cannot help you know your credit score because it only consists of your credit information for Irish users. However, the app offers Experian Boost to help you improve your overall financial condition. It can allow you to connect it to your bank account and use on-time payment records of rent, utilities, and digital subscriptions. These payments are not recorded otherwise. They can help boost your credit score.
The Experian app also provides you with information related to building your credit history and managing finances. When your credit rating is better, your lender will be able to offer you better interest rates.
Tips for managing your credit score
If you are looking to qualify for lower interest rates, you should consider the following tips to ameliorate your credit file:
1. The credit utilisation ratio should not be more than 25%
Many people are under the impression that they do not need to worry about the credit card utilisation ratio as long as they discharge bills in one fell swoop when they are generated. If your credit card balance is more than 25%, lenders will likely assume that you rely on credit cards to meet most expenses. As a result, they will charge very high interest rates and restrict the loan amount.
You should pay off your credit card bills before your lender reports the balance to credit reference agencies. Otherwise, your credit score will steeply fall. If you cannot get to know when they inform credit bureaus of the balance, you should try not to consume more than 25% of the total limit.
2. Use credit builder loans
If your credit rating is not up to scratch, you should consider taking out credit builder loans. These loans are aimed at building your credit history. They are small loans to be paid down in fixed instalments over a period of six months.
If you manage to settle your debt on time, you will see some improvement in your credit score. Credit builder loans are a little expensive. Make sure that you can easily repay them on time. Otherwise, your score will become worse.
3. Demonstrate less reliance on payday and similar loans
Your credit score could be a lot worse if your credit file is full of payday loans and similar loans. Try not to show an overdependence on these loans in order to meet small emergency expenses. Otherwise, your lender will likely think that you are poor at managing money. Excessive payday loans will call your creditworthiness into question.
The bottom line
Your credit score should be excellent if you want to avail yourself of affordable interest rates. The aforementioned apps can help you maintain your credit score. As there are no fixed criteria to determine your credit score, you should always try to keep your overall financial condition good.
For instance, keep your debt-to-income ratio also lower because this also influences your lender’s decision about approval. Consider consulting a finance broker who could help you improve your credit rating.
