5 steps to a better credit score

18-Sep-2015 written by : FSI-Team

Prevention is definitely better than cure, especially when it comes to credits. One credit-mistake can cost you more than you would expect. Although certain flaws on a credit score could possibly be corrected, it is always advised – not to allow a single mistake scar your credit report. Keep your report clean and maintain it that way. A credit score is unarguably the most important number in the life of a credit-consumer. It has an impactful bearing on the person's loan records and loan eligibility also. Therefore, it is utmost important to understand credit management advise and also execute them, in order to have better credit score. A very good credit score will always be useful in times of need of loans and credit.

How can a good credit score lead you towards an easy loan process? Well, here is how we chose to answer.

  • 1. Use your credit and debit cards wisely, understand their functionalities and avoid misusing under ignorance. Make sure you conduct the correct inquiries about the credit product/s that you have purchased from your bank.
  • 2. Managing your credits well: be careful to make timely payments in full on whatever loans you may be servicing. Avoid delaying payments even by one day. Issue reminders for yourself, but never delay any payment whatsoever.
  • 3. Avoid making new enquiries for any credits or loans, unless there is a need. Making frequent loan enquiries will reflect the person as credit hungry and dent the credit score.
  • 4. Resolve all note-worthy errors, delinquencies and mistakes appearing on your credit profile. For this, it is good to keep checking your credit report regularly and watch out for errors. Whenever you spot any error, immediately bring it to the notice of your bank and get it resolved.
  • 5. If you are a regular loan borrower, maintain a mix of active trade lines. Mostly, a loan ratio of 2% secured loans and 3% of unsecured loans is good for consideration of a new loan application. [This will ease an underwriter's decision and judgment process].

Along with these, it is important to have the knowledge of how to check CIBIL score and monitor your credit activities closely.

With these tips in view, you are sure to have a better credit score next time.



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