On a daily basis, banks and financial institutions get several loan applications from applicants. But unfortunately all of them are not approved, some are rejected too. The most common reason behind rejection is low credit score. If you haven’t heard the term credit score before you will be glad to know that this numerical term is an indicator of a person’s creditworthiness. Your credit score determines whether you are worthy of getting a loan or not. So now you might be pondering about the fact how to increase credit score. Since having a higher score will definitely benefit you.
Your credit score shows your past payment behavior of the debts. So, if you haven’t applied for a loan or credit card before just don’t assume that you might be having a good credit score. Credit score starts building up only if you have some credit facilities like a loan or a credit card. Your scores reveal the fact whether you have borrowed and paid back the amounts without any delays or not. Hence, it is very important to have a good payback history. And you must think sincerely about how to improve my credit score.
1• Clearing outstanding loans
If you have any existing loan, which is in default or you have missed paying any EMIS, then please try to clear it as soon as possible. You must always reduce your outstanding debt by always repaying it on time. Don’t miss any payments on your loan, as it will negatively impact your credit score. Timely payments will surely boost you credit score.
2• Manage multiple credit cards
Do you also have multiple credit cards, well it is not advisable to have too many of them but still if you have them you need to pay all your bills on time without delay and try and reduce the outstanding amount by paying more than the minimum amount due which is normally 5% of the card outstanding. Otherwise, non-payment of balances will reduce your scores. However, if you manage them properly and pay balances on time your credit score will be high. And also do not use more than 50% of the assigned limit of the card.
3• Don’t apply for loan several times
If your bank had rejected your loan in the past? Just don’t keep re-applying for it. Try to find out the actual reason for which you are being rejected. You need to work upon that reason and we can help you in rectifying your scores. We can guide you on improving your score in the short and long term as we understand the parameters which lead to improvement and deterioration of credit scores.
4• Pay all bills on time
You have to pay all your bills on time without any delay to have a high credit score. It shows that you have paid your entire outstanding amount responsibly in the past. So you are being worthy of credit in the future. This will definitely help to increase credit score.
5• Avoid negative elements on your credit history
You need to avoid all the negative elements related to your financial matters such as cheque returns, unpaid debts, over limit utilization of your credit cards etc. You must avoid them as they will affect your CS negatively. If you are successful in avoiding all of them you will have a high credit score.
Our experienced financial consultants will guide you to rebuild your credit score and will help you to remain creditworthy for your future requirements of credit. Our professional consultants will assist you and offer you with effective solutions to increase your credit score.
For more information connect with us
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