If your credit score is not terrible, but you just need a little boost to get better financial products, or just bragging rights, here are some steps you can take.

1. Credit card balance transfer

If you’re just stuck paying off the interest on your credit card each month to avoid incurring penalties, you will probably benefit from a credit card balance transfer programme. This allows you to transfer the amount you owe from Credit Card A to Credit Card B with lower interest rates. This helps you pay off the amount owed, as you’re no longer just stuck on interest payments.

In fact, many balance transfer credit cards also offer zero interest rates for a limited amount of time. This is to help you pay off that debt and get back on your feet. Do not take it as an opportunity to slack and spend that money on something else.

2. Debt consolidation

A personal loan can be a good booster for your credit score, especially if you use it for debt consolidation of revolving credit.

Credit card debt is one example of revolving credit – basically, it means your balance will snowball every month at a fixed interest rate. By gathering all your outstanding debts into one loan that will cost you less in monthly repayments compared to what you were dealing with before, you essentially lower your credit limit and debt-service ratio (DSR).

It also helps your overall credit score by clearing several debts at a time. This also helps reduce any score penalties that may have occurred due to missed payments.

3. Auto-bill payment

Automating your payments could be a useful financial move if you have a habit of using money set aside for bills to buy other things on impulse.

Most banks offer an automatic bill payment system that transfers the appropriate amount from your savings at a set time each month. This financial move ensures that you never miss a payment and does not allow you the opportunity to spend that money on something else.

It’s difficult to say how much a missed bill payment actually impacts your credit score. Each financial institution weighs it differently and doesn’t reveal the calculation. However, it is only good financial practice to pay your bills on time and getting on top of your bills will also help improve your score.