Quick Ways To Improve Your Credit Score

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People can be categorised into three types based on their credit standing. They are; (i) people who have never borrowed before and have no credit score (ii) people who have good credit scores (iii) people who have low or poor credit scores. Everyone will be falling under any of the above-mentioned categories. Let’s look at how we can improve the credit score from the current position.

Steps to Improve Your Credit Score

For different types of customers, different plans of actions need to be taken in order to improve the credit score quickly.

New to Credit

If you have not borrowed before from banks and NBFCs, you will not have a credit score. When you check your credit score, the credit report may show your score as ‘NH’, meaning ‘No History’. As borrowing is mandatory for the credit bureaus to calculate your credit score, you can take steps to get your hands on your first credit.

Score Builder Loans

Understanding the needs of the new credit section of customers, most lenders have a loan product that helps such individuals avail credit and build credit score. Known as score builder ...
... loans, these are exclusively provided to new borrowers at attractive interest rates. The loan amount may be smaller as the intention is to give you the first experience in the credit world.
After obtaining the loan, within 3 to 6 months, your credit score will be generated by the credit bureaus. It will range between 740 to 750. On regular repayment, you can see a surge in your credit score. Never miss a payment to keep up a good credit score.

Credit Cards

Credit card is one of the best ways where you can access your first credit and start building a good credit score. There are exclusive credit cards for first timers. Getting a credit card could be easier without a credit score if you have a good source of income. If you are a salaried employee and have a salary account, you can easily get a credit card from the respective bank.

Credit cards help you build a good credit history and thereby good credit score as well. Diligent usage and consistent on-time repayment in full can help you build a robust credit score quickly.
Peer to Peer Lender Loans

Apart from banks and NBFCs who provide loans to individuals who have not borrowed before. The application process is done online, and the loan status is declared within a day. You can avail this loan just from your mobile phone and start building your credit score quickly.

To know more about Quick Ways To Improve Your Credit Score

https://www.creditmantri.com/article-quick-ways-to-improve-your-credit-score/

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