In just three smart steps, the 27.1 million UK households currently subscribed to streaming services could improve their credit scores, financial experts say.
Subscriptions are one of the easiest ways to build a history of on-time credit payments.
Sticking to three simple steps can gradually improve your credit score and make it easier to get loans or mortgages if you ever need them.
There is no additional charge as long as you pay on time. It’s a really easy way to improve your credit score, or even build it from scratch if you’re just starting out.
Three simple steps to a better credit score
- Go to your Netflix account settings (or any other subscription service) and add your credit card as a payment method.
- Go to your credit card account and add select to pay the balance in full by direct debit from your bank account.
- This is the critical point: make sure you always have enough money in your account to make the payments. Be aware of any cost increases for the service you use.
Having a small purchase on your card each month, paid in full and on time creates a consistent payment history? This means that over time your credit score will increase.
Use this hack for any of your streaming services or regular monthly releases, be it Netflix, Spotify, Disney +, or Sky.
But be careful, make sure you pay off your credit card in full each month to avoid paying interest or accumulating credit card debt.
A Norton Finance spokesperson said, “Making a small, regular monthly payment to a credit card and paying it off in full regularly keeps the account active and helps you develop good credit habits. Over time, this nifty but simple habit can boost your credit score.
For more stories of where you live, visit InYourZone.