Credit score; Tips to improve your credit score; Tips to increase credit score; How to improve credit score;

Tips to improve your credit score

Credit score – is not an overnight affair. Not just your present actions but years of past behaviour can affect your credit health. A good credit score and solid credit history are the cornerstones of any lucrative credit card rewards strategy. To get the best interest rates, most lenders will require a CIBIL score above 750. Otherwise, as a high-risk borrower, you’ll have to pay higher interest rates on any loans you take out. However, there is hope. There are plenty of moves you can take to improve where you stand.

Here are 5 effective tips for you to start on the path to better credit

1. Check your credit report

Everybody is entitled to a free copy of their credit report. Look through your report and check its accuracy. See what kind of information is hurting you and create a good plan to address it. Make sure to pay your statement balance on time and in full every month.

Know your Credit Score report; Credit report; Credit Score; Credit Score level; What is your Credit Score;

Know your Credit Score

2. Keep your oldest accounts open

Long-running accounts add more value to your credit score. Keeping old accounts open helps to keep a long credit history of your report. Also, some credit scoring models may consider only the age of your oldest open account. By closing your oldest accounts, you are shortening the length of your credit history.

Tips to boost your credit score; Maintain Bank Account;

Maintain your old Bank Account

3. Pay your bills on time

Make sure that your bills are paid on time and in full to maintain a clean credit history. Paying credit card bills in full rather than paying minimum due amount will help in maintaining a decent credit score.

Pay your bill on time; Tips to boost your credit score;

Pay your Bills on Time

4. Pay off your debt

This is easier said than done. However, paying down your balances will improve your debt-to-limit ratio. This will, in turn, improve the credit health over time. If you have more than one debts, attack one with the highest interest rates first.

Pay off your debt; Tips to boost your credit score;

Pay off your Debt

5. Avail a right mix of secured & unsecured loans

There are two types of loans. Unsecured personal loans & Secured personal loans. Secured loans are the ones that you take towards asset creation, such as home loans. On the other hand, unsecured loans are taken for personal purposes, such as car loans. Unsecured loans generally tend to impact your credit score negatively. If you already have a low credit score, try to minimize the unsecured component of your credit portfolio so as to influence your credit score positively.

Needless to say, once you improve your credit, you might find that a good score is a reward in itself.

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