INSUBCONTINENT EXCLUSIVE:
Lack of awareness about how to increase credit score is one of the main reasons why many individuals struggle with a low credit score in
For those new to the world of credit, understanding their credit score and credit report is crucial to maintain a healthy financial report.A
low credit score can have negative effects, especially when applying for new credit cards or loans.Even individuals with a goodcredit
history must regularly check their credit reports to maintain a good credit score
Here are some essential tips to improve your credit score.9 proven ways to boost your credit score1
Timely paymentsEnsure that repayments, be it for loans or credit card EMIs, are never delayed
Choose auto-pay options, set up reminders, and organize monthly task sheets to avoid late payments that can directly harm your credit
score.ALSO READ: How to remove late payment from your credit report2
Review your credit reportRegularly review your credit report for inaccuracies or misinformation
If you spot any discrepancies, promptly raise a dispute with the concerned credit rating agency to rectify the issues
Keep credit utilization ratio lowMaintain a credit utilization ratio below 30% of your total available credit limit
Distribute your expenditures across various credit products to achieve this
Avoid crossing the 80% credit utilization threshold to show responsible credit behavior and increase the chances of credit approval.4
Maintain a healthy credit mixWhile unsecured loans can impact your credit score, maintaining a mix of credit types can be beneficial
Go for a combination of unsecured loans like personal or business loans and secured loans like home or auto loans to balance risk factors
and boost your credit score.5
Limit credit inquiriesApplying for multiple credits simultaneously signals credit hunger to lenders
Frequent loan applications create a negative impression and increase the chances of loan rejection
Only apply for new credit when genuinely needed.ALSO READ: Does applying for a personal loan hurt your credit score?6
Don't max out your credit limitResist the temptation to exhaust your credit limit fully
Doing so increases your credit utilization ratio, leading to a lower credit score
If expenses strain your existing credit line, consider requesting a credit limit increase from your bank or lender.7
Preserve old accountsClosing old accounts or credit cards adversely affects your credit score
These accounts showcase your long-standing relationship with the bank and contribute positively to your credit history
Avoid nullifying this history by keeping old accounts active.8
Monitor co-signed loansRegularly check the status of loans you have co-signed
Unforeseen financial emergencies may lead the primary borrower to miss payments, impacting your credit score
Stay informed about co-signed loans to protect your credit standing.9
Secure at least one credit productIndividuals with no credit history face challenges in obtaining loans
Acquiring at least one credit product, such as a credit card, can help establish a credit history and boost your credit score, opening doors
to better financial opportunities.ALSO READ: How to get your first credit cardIn conclusion, taking a proactive approach to these strategies
can significantly improve your credit health and pave the way for a more secure financial future.
