Credir Score Improvement: To take loan from banks, it is very important to have a good credit score. If your credit score is less than the prescribed limit of banks, then you may face problem in taking loan. Credit Score TransUnion CIBIL keeps the credit data of the people in the country, from where you can easily check your credit score. But today we are talking about if the credit score is not good then how can it be improved.
Banks keep an eye on credit history
Credit score is a three digit number. A credit score ranges between 300-900 and a 750 score is considered ideal. From the first credit card till now, the number of credit cards you have taken till now is accounted for in your credit history. If you want to make your credit history good, then you have to use your credit carefully and monitor it from time to time. Having a bad credit score can make it difficult for you to take loans for studies, housing or any other purpose. We are telling you how you can build your good credit score…
1. Pay Credit Card Bills on Time
It is very important to make timely payment of credit card bills or loan EMIs. Failure to do so is considered a default. Just as your credit card payment information is included in the credit history, so is the default information. In case of default, the credit score starts falling, so making timely payments is essential.
2. How dependent are you on credit?
Banks keep a close eye on how dependent you are on your credit. If you are more dependent on your credit then it will not be good in the eyes of the banks. Therefore, it is always advisable to use only 30% of the credit card limit. This limit also affects your credit score, so if possible, do not use more than this limit.
3. Borrow Responsibly
When you take a loan as much as you can repay, the bank is convinced that you are a responsible borrower. Considering your repayment capacity, the bank is ready to give you credit again. Not only this, if you also want to take a loan, then take a loan of the amount that you feel that you can repay and do not worry about what the loan institution will think of you.
4. Do not apply excessive credit
It is advised not to apply for more than one loan or credit card at a time. When you apply for a loan or credit card more than once, the bank understands that your financial condition is not good. Every time you apply for a credit card, your credit score drops. When you apply for a credit card, the bank asks for your credit report from the credit bureaus, which is recorded as a high inquiry. The more often these high inquiries happen, the more often your credit score falls.
5. Pay Small Credit Card Bills
Many a times it happens that due to having more than one credit card, you forget to pay small credit card bills and pay other credit cards on time. But doing so also has a bad effect on the credit score. The lower your credit balance, the better will be your credit score.
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