A bad credit score can feel like a financial burden, but all doesn’t have to be lost. Andrea Bicknell, senior adjudicator at JN Bank, says many individuals struggle with bad credit not necessarily because they deliberately fail to pay but due to circumstances beyond their control.

However, with the right approach, credit can be repaired over time, and financial stability can be restored, she assures.

Bicknell gave the advice while addressing a recent Smarter Credit webinar organised by the JN Financial Academy. The academy is managed by the JN Foundation.

The credit adjudicator said the most critical action one needs to take to rebuild their credit profile is paying their bills on time and in full.

“We’re saying this again because it is so important,” she emphasised. “Consistent and timely payments help to improve credit scores and demonstrate financial responsibility.”

Additionally, individuals facing financial difficulties should reach out to their creditors early rather than waiting for the bank or financial institution to call them. “It’s a good to approach the bank first if you’re experiencing challenges, whether it’s a medical issue, a family matter, or any other financial setback. Avoiding communication can lead to negative consequences on your credit record, which you don’t want,” the representative advised.

An essential habit for maintaining a good credit score is checking your credit report annually, she informed. Consumers are entitled to a free credit report from the bureau every year, which can be obtained online. Reviewing the report ensures that all listed debts and payments are accurate.

“If there’s an error, such as a loan that has been fully paid off but still appears as outstanding, you need to contact your bank immediately to correct the discrepancy. Waiting until you need a loan to fix such issues can cause delays and impact your borrowing ability,” she warned.

The adjudicator recommends the following four strategies to improve one’s credit scores:

1) Obtain a secured credit card with a manageable limit

A secured credit card allows individuals to rebuild their credit by making a deposit, which determines their credit limit. By using the card responsibly making purchases and consistently paying off the balance users can establish a positive credit history.

2) Avoid closing old credit accounts

Keeping old accounts open helps build credit history, which is a crucial factor in determining credit scores. “If you have a credit card from university, for example, you may want to keep it open, even if the limit is small. Long-standing accounts strengthen your credit profile,” Ms Bicknell explained.

3) Reduce outstanding debt

Paying down existing debts improves the debt-to-credit ratio, which significantly affects credit scores. The recommended approach is to tackle high-interest debts first, such as credit card balances, before focusing on lower-interest loans.

4) Maintain a mix of credit types

Having a combination of credit accounts — such as mortgages, auto loans, student loans, and credit cards — can contribute positively to a credit score. “A mix of different credit types demonstrates an individual’s ability to manage various financial responsibilities,” the representative noted. However, for those already struggling with high debt, it’s advisable not to take on new loans until their credit utilisation ratio improves.

“There’s no quick fix for bad credit,” she said. “It’s a gradual process that requires responsible financial behaviour. But with consistent effort, individuals can achieve a healthier and stronger credit profile.”

By following these expert tips — paying bills on time, reviewing credit reports regularly, reducing outstanding debts, and maintaining financial discipline — individuals can take control of their credit and secure a more stable financial future, Bicknell advised.