11-Aug-2017 written by : FSI-Team
A good credit score is a gateway to your good financial future. However it is sad that many people do not pay attention to their credit scores until they need a loan. By paying attention to your credit rating from the beginning, you could stay credit ready always. Neither would your score tumble down ever nor would you require guidelines to repair the credit report.
Nevertheless let's find out certain tips to improve credit score and get better results in a record time.
For robust credit health it is important that you understand the basics first. You need to know what builds your score and what hurts it. For, in the backdrop it is your financial moves that determine health of your credit report.
There are five factors that primarily determine your credit score.
Paying attention to these factors your credit score would always stay hale and hearty.
Now, in order to improve bad score, pull out your free credit report from the CIBIL.
Study the report and find out if there is any misinformation or error on the report. As you find an error in the report, dispute the error with CIBIL. You can either dispute it online or send a snail mail for the same. Sometimes a simple error such as showing status of a closed account as open account can drastically hurt your report.
As the error is corrected your score would jump to a better place. Next you can ask the creditors to erase a disputed account altogether from your CIBIL report. You can make a settlement and change the status of bad debt.
As discussed above, percentage of credit limit being used affects the score badly. Sometimes the credit limit on the report is lower than the current, you need to get it corrected as soon possible.
If however your credit utilization is more you can consider applying for a couple of credit cards. With good history of repayments adding two cards would help you raise the limit and you could successfully maintain the credit health.
In case you have too many cards, you can choose to close certain high cost cards. Herein you should be careful enough to not close an old credit card with good history.
The purpose of all the financial moves should be to enhance the score. By raising the score, you would also raise your worth. It would not be easy to get loans for bad credit score with broken credit score. You can consider applying for a secured credit card or secured personal loan. With right mix of credit accounts, your creditability as a borrower would rise.
As you successfully repay the loans for next few months you would build a good history. It would enhance the score and would make you ready for bigger loans. Soon you may be ready for a home loan!