If your credit is a little bruised these days, you may be asking yourself how you can improve your credit score and start fresh.

Did you know that your credit score can influence your ability to get a job? Most of us tend to think that our credit score only matters when we are applying for a loan. In fact, it can be a determining factor for eligibility in matters that are part of normal, everyday life.

Who looks at your credit score?

• Potential employers
• Mortgage companies
• Credit card companies
• Apartment managers
• Cell phone companies
• Utility companies
• Banks, when you attempt to open a checking account

Your credit score is important because it reveals your history of financial stability and perceived “trustworthiness”.

What affects your credit score?

The worst thing you can do to your credit score is failing to pay your bills, followed by paying them late. Neither does it look good to use up every bit of credit available to you.

How to improve your credit score

The first step to repairing your credit score is making the decision. It requires changing some of your financial behaviours. For example:

• Always pay your bills on time, at least the minimum amount.
• Use less than 50% of your total available credit.
• Don’t apply for several credit products at the same time.
• If you have multiple credit cards, cancel those with the shortest history.
• Avoid consolidating loans – this could push your total borrowed amount over the 50% mark.

Managing your existing finances responsibly is the only way to rebuild a badly damaged credit score. If you need cash in a hurry to pay an unexpected expense, try a microfinancing loan to get through a short-term need.