Well, every adult knows the importance of a good credit score. This cannot be overstated. You will be glad to know that if your credit score is good enough then it will easily increase the chances of the approval of your loan application. This score is dependent upon your repayment history, outstanding debt, number of active loan accounts and frequency of loan applications, basically. It has its own perks. But the question arises here on how to improve the credit score and make it good.
You can easily check your credit score on one of the bureaus, i.e., Experian, CIBIL, CRIF and Equifax and know what factors are affecting it. Then you may decide all the regular efforts taken in a flow. Here in this blog, Savepro will tell you 3 easy tips: 1. Don’t miss out on EMIs It’s the first week of the months when all the EMIs are going to alarm! Paying all the loan instalments and credit card bills timely will assure that you have got a healthy credit score. This will help to maintain a good score in the longer run. The lenders before giving out any loans will rely upon your repayment history such that, they can gauge your likelihood to pay loans in the future. If you don’t pay it on time and prefer rolling over the outstanding balance; that can affect your credit score negatively. It’s considerate to take note that even the bill payment history can affect your credit score. Make sure that you pay all the bills such as phone bill, electricity and other utilities bills on time. The easiest way is to make sure that bill payments are automated. 2. Pay attention to credit utilisation ratio What is Credit utilisation ratio? It is that ratio of the outstanding credit card balance to the total credit limit. Let’s help you understand this with an example, if Riya’s balance is INR 20,000/- on a credit limit of INR 50,000/-, and the credit utilisation ration is 40%. The highest utilisation implies at the maximum dependency upon credit which, in turn, can hurt your credit report. When you swipe your credit card for even a menial expense, then it’s a sign that you are alarmed at a high credit utilisation ratio every month. 3. Don’t apply for too many loans Don’t apply for loans for every little need as that will showcase a bad credit report to these lenders. This stands true for credit card applications. It will make you look desperate for credit with restricted resources to payback. Now that you are aware of how one can improvise on their credit score, it is ideal to say that you can depend upon Savepro for any relative queries. Have a higher credit limit but no outstanding balance! :)
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