Dearness In this era of people, people do not have the same savings, which often requires loans for large expenses. However, if your credit score is not good, you may have difficulty in getting a loan. Therefore, it is important to keep your credit or CIBIL score strong, as it reflects your ability to repay the loan. Here are some ways from which you can increase your credit score.
How much should the credit score be?
The credit score is between 300 and 900. Transonian CIBIL is one of the four credit bureau to prepare a credit score report in India. Nearly 900 CIBIL score or credit score is considered the best, while the score between 300 and 549 is the worst. The score between 550 and 700 is considered fine.
These measures can increase credit score
Do not take several loans simultaneously: Keep the number of loans taken in a certain period of time. Take another only after paying a loan to protect the CIBIL score from falling. Taking several loans simultaneously indicates that you are financially struggling, which may reduce your CIBIL score. In contrast, successfully repaying a loan increases your credit score.
Take a long -term loan: Whenever you take a loan, try to choose a long period for repayment. This will reduce your EMI and you will be able to pay on time. Your credit score will be better by delaying or default in EMI payment.
Fill EMI on time: The repayment of your outstanding loan has a significant impact on your credit score. Therefore, maintain discipline in EMI payment. EMI payment delayed a fine and your credit score is low.
Keep old credit cards on: If you have old credit cards, maintain them, provided you can pay your bills on time. This will help you create a strong and long credit history, which will help in maintaining a good credit score in the future.
Customize the credit limit: Your credit use ratio has a profound impact on your credit score. Using credit within your prescribed limit is better for your credit score. Reaching the range has a negative effect and the credit score is low. To avoid this, you can contact your bank to accommodate the credit limit according to your expense habits.
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