Close Menu
Saving Superstar
    What's Hot

    What is a hard credit check?

    July 4, 2025

    How to start investing with little money

    July 2, 2025

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025

    How to tell if an AI investment tip is trustworthy

    June 23, 2025

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    What is a hard credit check?

    July 4, 2025

    How to start investing with little money

    July 2, 2025

    What is a soft credit check?

    June 27, 2025
    Facebook X (Twitter) Instagram
    Saving SuperstarSaving Superstar
    Facebook X (Twitter)
    • Home
    • Budgeting

      An honest guide to supermarket loyalty cards in the UK

      April 24, 2025

      How to stretch your grocery budget when prices keep climbing

      April 24, 2025

      Frugal living hacks: 10 Ways to save without sacrificing comfort

      April 16, 2025

      The biggest budgeting mistakes that keep you in debt

      March 26, 2025

      How to cut back on expenses without sacrificing your quality of life

      March 25, 2024
    • General finance

      20 Tricks shops use to make you spend more

      June 6, 2025

      What is lifestyle creep and how to avoid it

      May 28, 2025

      How to bleed your radiators: A step-by-step guide

      May 7, 2025

      Pay per mile road tax: What, where and when?

      September 13, 2024

      How to lower the cost of owning a dog

      April 1, 2024
    • Housing
    • Credit & debt
    • Bills and utilities
    • Saving and Investments

      How to start investing with little money

      July 2, 2025

      How to tell if an AI investment tip is trustworthy

      June 23, 2025

      What is the avalanche method and how does it work?

      June 20, 2025

      Your cash ISA is full, what next?

      June 6, 2025

      7 Sensible steps to save for retirement

      May 21, 2025
    • Seasonal savings

      10 Ways to save money on back-to-school shopping

      August 5, 2024

      10 Amazon Prime Day tips – Get the most out of Prime Day!

      July 1, 2024

      Start the new year with a new financial outlook!

      December 26, 2023

      How to get the best out of post-holiday sales

      December 21, 2023

      How to save for Christmas throughout the year

      December 18, 2023
    • Contact
    Saving Superstar
    Home » Simple ways to rebuild credit without getting into more debt
    Credit and debt

    Simple ways to rebuild credit without getting into more debt

    JamieBy JamieMay 4, 2023Updated:July 4, 20256 Mins Read
    Share
    Email Facebook Twitter LinkedIn

    There are thousands of posts online that show you how to rebuild credit. Many of them advocate using your credit card to buy things or getting a personal loan to build credit history.

    Those may work, but they aren’t the best.

    Credit rebuilding can involve using a credit card, but strategically. Using it in a way that doesn’t cost you much in interest at all.

    As for personal loans. If you want one, get one but there’s absolutely no reason why you should unless you’re consolidating credit.

    That’s another subject entirely!

    So what are these supposed ‘simple’ ways to rebuild credit without getting into more debt?

    I’ll show you.

    Simple ways to rebuild your credit score

    Like most things money, rebuilding credit takes willpower. It’s not difficult, but it does require self-control and a desire to make things better.

    Here’s how to do it.

    Get a copy of your credit reports

    Your first job is to see where you are. Request your free report from Experian, Equifax and TransUnion.

    You’re entitled to one free report per agency, per year. I wouldn’t normally advocate getting all your reports at once, but this is as good a time as any.

    It does mean you may have to pay for a report if you want to track progress, but if you don’t know where you are, you won’t know where you’re going.

    Check your credit report for errors or omissions

    Once you have copies, check your credit report for errors or omissions right away.

    The credit reference agencies are very good at what they do but update millions of records every day.

    They are also dependent on the information provided to them by third parties like credit card companies, your bank and so on.

    If any of this information is incorrect, it can impact your credit score.

    That’s why I strongly recommend setting aside an hour and going through each report line by line.

    Make sure everything is 100% correct, that your accounts are correct, any financial links are accurate and open accounts reflect the real picture.

    If you find errors, contact the credit agency involved. Each has a dispute resolution process to help correct errors.

    You’ll need to prove the mistake, so you’ll need bank statements, settlement confirmations or relevant paperwork, but that’s usually all.

    Corrections can take a couple of months, so be patient!

    Use your credit cards strategically

    Use your credit cards strategically

    Credit cards are a pivotal part of credit scores. They are also easily accessible, straightforward to manage and can count towards your credit history.

    Using them strategically means using them with your credit score in mind.

    That means:

    1. Using your credit card constantly on everyday things like groceries
    2. Paying off the balance regularly as if you were using cash or your debit card
    3. Keeping credit card utilisation as low as possible (under 30%)

    Do all those things and your credit card can contribute to your credit score in a very meaningful way.

    Always pay on time

    A key part of your credit score is measuring how well you manage credit. One aspect of that is paying on time.

    Missing a payment can have a serious impact on your credit report and your score, so try to avoid it if possible.

    Set up direct debits for everything and make sure there is enough money to pay what you owe.

    If you think you’re going to miss a payment, pre-empt it with a call to the creditor.

    This is one of those times where it’s much better to ask for permission than forgiveness!

    Creditors have various tools to hand like payment holidays or you could renegotiate the monthly payment or something else entirely.

    The key point is, always pay on time and talk to your creditor before you miss a payment. They will be much more willing to work with you if you’re taking control.

    Pay down debt as much as possible

    I mentioned keeping credit card utilisation low, at around 30%, but it’s an important point worth more discussion.

    This is part of credit utilisation, the measure of how much of your available credit you are using.

    It is widely believed that you should not use more than 30% of your available credit. The lower the better.

    For example, if you have two credit cards with £1,000 credit limit each, you could have £150 outstanding on each or £300 across both to remain within that 30% limit.

    This is a real time calculation and doesn’t count past behaviour.

    If you had over 30% utilisation before, once you’re below that threshold, your score should begin climbing.

    While I talk about credit cards, debt utilisation is across the board. It includes overdrafts, personal loans, store cards, payday loans and any credit you may have.

    Get a higher credit limit

    Finally, let’s talk about getting more credit. Yes, I know it sounds counterintuitive, and it is to a degree. But there is method in the madness.

    If you have credit cards and can be self-disciplined with them, request a higher credit limit.

    This raises that 30% credit utilisation limit a little higher and means you’re using less of your available credit.

    However, you need to be careful. This only works for existing credit cards. Getting a new card doesn’t count in the same way.

    Getting a new credit card will negatively impact your score. It should only be a few points, but that’s not the direction we’re aiming for.

    Credit applications mean a hard enquiry on your credit report, which can negatively affect your score.

    Asking for a higher credit limit doesn’t require a hard enquiry, so won’t impact your score.

    Rebuild credit without more debt

    Rebuilding credit can take a long time and a lot of willpower. But, with many areas of life tied to our credit reports, it’s not something we have much choice with.

    But it doesn’t have to be difficult. Follow some simple rules, save more than you spend, be careful getting new credit and always pay on time and your credit score will gradually increase.

    Set those mechanisms in place and you can forget about credit and get on with your life while the system takes care of itself!

    credit card rebuild credit
    Jamie
    • Website
    • Facebook

    I'm a writer and editor at Coastal Content and Brainstorm Force with a background in IT and networks. I'm passionate about helping people take more control of their lives, especially finance.I'm a copywriter by training, which is why my posts are all no-nonsense and to the point, with little fluff or filler. We're all busy people and are just looking for the information we need quickly. That's my style and the style of Saving Superstar.

    Related Posts

    What is a hard credit check?

    July 4, 2025

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025

    What is the avalanche method and how does it work?

    June 20, 2025

    How to create your own debt management plan

    June 18, 2025

    How to manage debt in retirement

    June 11, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Don't Miss
    Credit and debt

    What is a hard credit check?

    July 4, 2025

    A hard credit check, also known as a hard search or hard inquiry, is when…

    How to start investing with little money

    July 2, 2025

    What is a soft credit check?

    June 27, 2025

    Talking to your kids about debt

    June 25, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    Links
    • Write for Saving Superstar
    • Privacy Policy
    • Disclaimer and affiliate information
    Categories
    • Bills and utilities
    • Budgeting
    • Credit and debt
    • General finance
    • Mortgages and housing
    • Saving and Investments
    • Seasonal savings
    Latest News
    • What is a hard credit check?
    • How to start investing with little money
    • What is a soft credit check?
    • Talking to your kids about debt

    Type above and press Enter to search. Press Esc to cancel.