How to improve your credit score

1. How To Improve Your Credit Score A credit score helps banks and lenders to know the creditworthiness of the borrower. On the basis of credit score, it is decided by the lender whether to approve a loan to an individual or not. This three-digit number has a lot of importance. The higher will be the credit score the more will be the chance of getting a loan on favorable terms. Quick ways to raise your credit score are as follows- You should keep your credit limit to a minimum and restrict your credit usage according to your credit limit.

2. Late payment can lower your credit score which could affect your interest rate in the future. The most effective way to increase your credit score is to make payments on time. You should set up an automatic payment option for a minimum of about due. This is the best way to improve your score. • Having no credit history can keep your credit score at zero. It means you don’t have any experience with credit. You can apply for a secured credit card to build good credit history. Also Read:lowest interest rate gold loan company in delhi

3. You should borrow the amount you can pay at once. You should take another loan after repaying the earlier loan and avoid taking multiple loans at one go. It can fall your credit score because it creates an impression that you don’t have enough funds. • Using a credit card is not bad when you use it responsibly. A credit card helps you to build a good credit score that positively affects your credit score when you it in responsible way. • It may happen that you have paid off a loan but due to an administrative error it is showing pending and it can adversely affect your credit score. You should review your credit report regularly to avoid such errors.