Credit Score helps the customer a lot in getting a loan. Therefore, it is very important to keep it good. Customers whose credit score is goodwill easily get loans from the bank at a lower rate of interest. It is effortless to maintain a credit score, just you have to take care of some essential things. Today, we are going to tell you some ways in which you can improve your credit score. Here are five ways to know...
Timely payment of dues:
Your credit card payments and your monthly EMI should always be paid to the customer on time. Pay your dues on time for better credit scores. This will always keep your credit score high.
CUR on Credit Card:
CUR means the credit utilization ratio. It is an ideal situation to maintain your CR by 20 to 30%. Understand this if your card limit is one lakh and you spend Rs 50,000 in one month, your CR will be 50%.
Must maintain credit line:
The credit score will be good when the credit line is outdated. If you make a payment on time, you should keep your credit line long. If you have been using a credit card for a long time or your home loan is several years old, it is good for your credit score.
Avoid the choice of settlement options:
Premature closure of a loan has a positive impact, but the customer should not choose the settlement option. If you select this option, yo it affects your credit score for a long time. This option should be chosen only in case you are not in a position to raise any kind of money to repay the loan. The lender offers to discontinue the loan by paying the dues from the customer.
Check credit report from time to time:
If you use a credit card or have a loan against you, you should keep checking your credit report from time to time. This will enable you to know the reasons for the fall of your credit score and fix them on time.
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