You can improve your credit Score by maintaining a good credit history, which is essential for loan approvals by lenders. Follow these 7 steps which will help you better your score:
Pay your dues on time: Clear your outstanding dues on time. When you spend from your credit card, make sure you don’t just pay the minimum amount required to continue the usage but pay in full or the maximum amount which you can afford for that month.
Cut your Credit Cards: A better way to increase your credit limit and decrease spend ratio is to have no more than 3 credit cards at a time.
Use your Credit Card responsibly: It is a good practice to use your Credit card with the thumb rule that you restrict your spending up to 30-35% of your credit limit.
Old is gold: Do not hasten to erase your records from the accounts once you have paid your dues in full, because a trail of paying EMIs on time is a score booster.
Limit your loan applications: do not hasten to re-apply with another bank as they would be able to see your rejection by the previous bank. This could further hurt your credit score & make things worse.
Be cautious with inquiries:You don’t want to reflect that you are continuously seeking excessive credit; apply for new credit cautiously.
Keep a track of your Score:Checking your credit score regularly is a good and harmless practice. It helps you keep a check on your financial health and accordingly devise adequate measures to rectify it.
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