Credit Score It is very important to be better. If your credit score is bad then it becomes difficult to take a loan from the bank, take credit card. Let us tell you that the credit score is between 300 and 900. Strong credit score is easily helpful in getting loans at low interest. Now there will be a question in your mind that if my credit score is bad then how can I improve it. Let us tell you.
1. Take a loan for a long period
If you want to improve your credit score, then select the option to repay the loan for the period. This will reduce EMI and you will be able to pay on time. When you do not pay EMI, postpone or default, your credit score will be better.
2. Do not use more than 30% of the credit limit
Do not use more than 30% of the credit limit if you use credit cards. This will improve your credit score. Not only this, you should continue the use of your old credit card as long as you can pay your bills on time and full. This will help you to create a strong and long -lasting credit history, and this will help you improve your credit score in the future and keep it high.
3. Avoid taking several loans simultaneously
Applying for multiple loans in a short time may make your credit score fall as banks can consider it a sign of financial instability. A person should take as less loan as possible in a certain time frame and pay a loan before taking a second loan.
4. Avoid becoming a guarantor
There is some risk in becoming a guarantor because your credit score will be affected if the primary borrower defales. You should accept such a system only when you trust the borrower’s ability to repay and their financial stability.
5. Correct mistake
Take a credit report and check it. If you find a mistake, get it corrected. Review your credit report from time to time.
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