Before lending to a customer, banks or financial institutions conduct various checks to ensure that the customer will be able to repay the loan with interest payable. A credit score is seen while giving the loan. This measure gives all the information related to the customer's credit history, bank and loan accounts, repayment track record, and total loan level. The credit score is said to be from 300 to 900, a good credit score varies from 550 to 700, and the very best credit score is from 700 to 900. A person can increase good credit habits. We are telling you how you can improve your credit score.
Credit Discipline:
It is important to create discipline with regard to the repayment of credit. EMI and credit card dues should be paid before the due date. Creating reminders or setting up auto debate instructions works well to maintain this discipline.
Create a good credit score:
The customer should create a good credit history, showing a variety of credit, short-term or long-term secure tracks to show that the customer can fill the loan in the future.
Joint Accounts:
Where the customer is a joint holder, it is important to monitor the repayment made for the loan. The customer is equally responsible for making EMI payments on joint loans and has a direct bearing on the credit score. The same principle also applies to loans guaranteed by the customer.
The customer can use the new credit report by paying the prescribed fee on the CIBIL website to check the credit score.
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