A Credit score is based on the customer’s creditworthiness. The credit score should be high if the borrower wants to avail of a loan from the lender. The credit score is normally based on how good the credit report is of an individual. The credit report contains details like the number of loans availed, repayment history, debt status, etc.
Everyone is looking at improving their credit scores. It is possible over a while by following a few procedural steps. However, it can be a little challenging because of the procedural steps followed. A credit score either has to be built from scratch or rebuilt after the scores have hit low. Higher the credit score better the eligibility of the borrower to avail loan from banks or NBFCs.
WHAT IS CONSIDERED A GOOD CREDIT SCORE?
One of the four credit bureaus is TransUnion CIBIL. They generate reports related to credit scores in India. A typical CIBIL score comes under the bracket of 300 to 900. If the score is closer to 900, it is said to be a good score. In this case, you are more likely to be sanctioned loans quickly and smoothly. A score between 500 to 700 is considered fair and can be worked on and made higher. While a score between 300 to 500 is considered poor. Conscious steps should be taken to improve your credit score
There are various ways to improve your credit score and they are…
1. Do not miss your installment payments
This is one of the most important factors to maintain a good credit score. Any payments like credit card payment or a loan repayment monthly installment should be timely paid. It will not only save you from the fine levied but will also increase your credit score and a lot of benefits can be availed from the same.
2. Customize your credit limit
It is a stated fact that the more it is better if your credit score is as per the limit so that it is not a hurdle to make monthly installments. This way it will not only be comfortable for you to pay monthly installments but also increase your credit score eventually.
3. Opt for a longer tenure
When you are availing of a loan from a lender opt for a longer tenure to repay the installments. This will reduce your monthly installment amounts and also give you ample time to plan and make payments. This way you can comfortably make payments resulting in an increased credit score.
4. Verify & check your CIBIL report for errors
There is a possibility that CIBIL might make errors in your credit report. This is also one of the major factors bringing down your credit score. Ensure your CIBIL report has all the information correctly entered especially details like loan name, age, amount availed, past payment history, and other details
5. Clear Due Accounts
Having all the bills paid regularly will help you increase your credit score. It prevents red flags like late or delayed payments payment which will drastically reduce the credit score.
The above habits might result in increasing your credit score will be highly beneficial while availing of a loan from banks or NBFCs. However, it should be noted that all the above habits will not immediately increase your credit score. It might take 3 to 6 months to stabilize and establish a good credit score. We, at Moneymax help and guide you in various ways to maintain or increase your credit score. For more details, you can write to us at firstname.lastname@example.org and visit www.dhejo.com, or call 9092090817.