posted on 2019-07-25 12:41:14 by Admin
There are so many ways through which you can improve your credit score as it is directly proportional to the possibility of approving a loan from a bank or NBFCs. It doesn't matter you are applying for a personal loan or a home loan, your lender will always seek your credit score firstly before aprroving your application for loan.
Here are a few factors which surely going to improve your credit score in a short portion of the time. Do follow them to get the best credit score.
Before working on how to improve your credit score, you have to first check your credit score online so you can review it and can set a goal for your desired credit limit. From the report you can check the factors which are affecting your credit score most so you can work on them. Click here to check credit score for free.
Paying the credit cards bill on time is the simplest way to improve your credit score. Whenever a lenders check your history for approving your loan he firstly reviews your history about how good you were on paying the bills on time which reflects in the future how likely you are about to pay the loan’s EMI on time. So never wait for the due date. Try to pay all the bills on time to maintain a good credit score. Delaying in the bill submission can negatively affect your credit score so always keep this thing in mind if you want to improve your credit score limit.
This is the factor which people think about how it can help in improving your credit score but it is very easy to understand that you have to pay all the bills at anyhow so paying them trough credit card and then paying the credit card bill helps you in improving your overall transaction & billing history which is used by many lenders before approving the loan.
A very important factor that affects your credit score most. As we have already discussed how the bank and non-banking financial companies check your history to approve your loan. Not paying the past loan or their EMI on time affects your credit score most. In case you of emergency need of funds, lenders can ignore your request just because of bad credit score so do all the debts paid on time to improve your credit score.
Taking high debt or multiple loans at a time shows that you are in an unforgiving cycle and you in the phase of insufficient funds to repay the loan successfully. Try to apply for another loan after completing the payment of one loan so it can boost your credit score and history both.
As credit score is mostly dependent on your past credit histories so apply for mix credits like secured and unsecured for long and a short tenure to get a strong credit score.
Using the same credit card for a long period helps you in building a strong history of transaction and your past payments which solely helps in improving your overall credit score.
Always try to use the limited amount which is given in your credit card limit. Reaching close to the limit can inversely affect your credit score. Try to spend less from your credit card limit so it can improve your credit score too. You have many expenses than ask to your bank or lender to increase your credit limit because reaching every time to your credit expense limit can affect your credit score badly.