5 Tips To Improve A Bad Credit Score Which You Should Learn Today!

Author : Finway Capital | Published On : 15 Mar 2021

Introduction

Most of the time, when you purchase with 5-digit figures, it is on a credit basis. So it has become essential to have a good credit score with a clean background. The higher the score, the more likely he is to enjoy credit facilities and sanctioned loans more. The purpose of maintaining a credit score is to have assessed the credit-worthiness of an induvial. Emergency loans in India are only sanctioned to an induvial with a credit score of 600 or above. In India, India's Reserve bank has given licenses to four companies to assess the credit reports on the individual.

1. Repay your Dues

To get a good credit score, it is essential to repay the dues on time, as all these are recorded in your credit history. And if you want to make a credit purchase or take a loan, the lender will go through your credit history to get an idea of how much you pay off your dues to determine your credibility on a timely basis.

2. Credit Score History

Your credit score is an important piece of information that determines whether the loan or credit is to be sanctioned or not. Maintaining lengthy records of your credit history will boost up your credit-worthiness, which in turn boosts up your credit score. The only thing is that you have to make sure there is no negative remark.

3. Don’t Apply for New Credit Cards

Concentrating on clearing off the dues from your old credit card instead of applying for a new one to make more credit purchase. This reflects badly on your credit history as well as your credit score. Each financial activity is recorded in the credit history.

4. Avoid too much credit purchase or loan at the same time.

Do not get swayed by making too many credits purchase at the same time. It becomes difficult to pay dues on a timely basis. If you take too many loans, it interprets that your financial situation is not in that good shape. Be patient and do one thing at one time.

5. Check your Credit Report

It would be best if you made a habit of checking your credit report monthly or quarterly. Check your credit score, credit history, and most importantly, if there are any discrepancies. By reviewing your credit report, you can personally sense the priority to pay which dues. By checking your credit score, you can take the necessary steps to improve your credit score. And lastly, if you find any discrepancies, you can immediately report them instead of being carried forward.

Conclusion

People having a good credit score has the privilege of sanctioning loan from any financial institution. Guaranteed loans for bad credit of an induvial can be sanctioned only if he/she has proof of having a stable income or a guarantor. But the bottom line is to have a good credit score to enjoy a good credit standing.