Healthy Tips On Improving Credit Score

By Author: Rajeev Ranjan
Total Articles: 12
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It has been observed by various credible sources that more and more Indians are increasingly defaulting on repayment of loans as well as delayed payment of credit card bills. While some are habitual defaulters, others are genuinely finding it difficult to make payment on time as they are grappling with poor government policies, economic slowdown, high inflation and job stagnation. Nevertheless, delay or lapses in payment have serious repercussions in the financial future of an individual. While the credit rating may not straightaway get affected unless you have a credit card default, the future lender would obviously take this into consideration and would be doubly cautious in lending you credit.

In case if you are low on the credit score margin, here are some sure shot ways to improve credit score.

Check credit report –

To begin with, check your credit report to find out whether it has any errors. The report contains your personal information and all your credit related data. It is through your credit history that the credit bureaus calculate your credit score and assess your credit worthiness. If the ...
... information is incorrect it will directly affect your credit score. So make sure that there are no errors in your report.

Reduce your debt –

Although it is not possible to remain totally debt free, yet you can start by paying off your dues whenever you can. Make a list of how much you owe, to whom and at what rate of interest. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

Pay your bills on time –

See to it that you do not make it a habit of delaying your payment of EMIs and credit card bills. Paying bills on time also increases your score and gives a good impression to the lenders. These are important points which go a long way to determine you as a person who handles his finances responsibly.

Borrow credit only when necessary –

Apply for and open new credit accounts only as needed instead of keeping it just for the sake. Also, do not take a loan to repay a previous loan. Same goes for credit cards. Another important point to be noted is that closing an account in between without repaying it will still show up on your credit report. This is a serious blunder and will plummet your score.

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