how to improve credit score?
In times of difficulty or when there is a sudden need for money, many times we have to take a loan. Do you know whether the bank will give you a loan or not? Your credit score has a big contribution to its decision, whenever you apply for a loan in any bank, the bank checks your credit score. A credit score tells about your credit history, when you have taken loans, how many debts you have now, how many credit cards you are using, how much debt you have, as well as how much you can pay your debts responsibly. We do.
If you have taken a loan and due for some reason there is a delay in repayment of some loan installments or EMI, then it puts you in trouble and the installments start defaulting. When this happens, the first effect falls on your credit score. Paying loan installments on time improves your credit score. A credit score is a very useful thing these days, so it is important to maintain a good credit score. A credit score is fixed between 300 to 900. Credit above 750 is considered good. Bank does not give quick loans to people with poor or low credit scores. Even if the bank gives it to that person, then a higher interest rate is charged for it.
If your credit score has also deteriorated due to some reason, then today we are going to tell you some such measures which can prove to be helpful in improving your credit score. Whenever a bank or company calculates the credit score of a person, it first looks at the payment pattern of the person’s credit card and loan EMI, so you should pay the credit card bill or EMI on time. For this, it would be better that you choose your installation wisely, while if you forget the bill date, then you should set reminders for each time the bill date so that you do not forget it. Never take more than two unsecured loans. An unsecured loan means that you do not need to mortgage anything like – a personal loan or a business loan You should not take more than two unsecured loans, it can spoil your credit score. The reason for this is that your CIBIL score is good if you take a secure loan like an auto loan, or home loan and repay their EMI on time. If you forget to pay EMI, then it will also have a bad effect on your credit score, so while taking a loan in partnership with someone or make sure how and who will pay the EMI of the loan. Also, you have to check whether your partnership has paid the EMI as promised.
Apart from this, if you are a joint account holder or you have become someone’s loan guaranteed, then the effect of not paying the loan installment on time can spoil your credit score, then you make a decision after thinking. The score gets worse. Actually, the information related to your loan account or credit card is sent to the bank cibil, in which there is a possibility of a mistake during the process of reporting. In such a situation, if you keep checking the credit score from time to time, if the score has deteriorated without any reason, then it can be rectified by applying.
Do not take multiple loans at the same time, it is also likely to spoil your credit score. Sometimes, due to taking multiple loans at once, the EMI becomes high and it is difficult to repay it on time. In such a situation, your credit score deteriorates, try not to take multiple loans at once, clear all credit card dues, make a plan to repay your credit card amount before the date under the plan, and improve your credit score. To improve your credit score, it is important that you spend only 30% of your credit limit level per month. Unaccounted spending shows that you spend your money without thinking. This can drop your score.
At the same time, while using your credit card, remember that you do not take a loan up to the maximum limit of your card because doing so reduces your credit score. Sometimes the missed payment amount appears in the days’ Past due section of your credit report. In such a situation, if you have DPD on one or more cards, then you should pay the pending amount immediately and also keep in mind that the payment is on time.
If you are unable to pay the entire due amount then the company offers to settle you in one installment. In which you have to pay a part of the outstanding amount. Usually, everyone chooses such a settlement option but selecting this option shows that you accept that you will pay the entire outstanding amount. can’t make the payment. Its information is given by the company to the credit bureau. So hopefully by keeping these measures in mind, you will be able to improve your credit score.
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