Life is easier if you have good credit scores. The credit score, a three-digit number, impacts every aspect of your financial life and achieves significant turning points, such as investing in residential property, purchasing a car, or renting out a section of your home. To boost your credit score, it would be best to pay your Credit Card bills on time and use the Credit Card App. The article will guide you through building credit even though you do not have any credit history. In the article, you can learn how to build credit and improve your credit score.
What is a Credit Score?
A credit score is a three-digit number that shows your eligibility for repaying loans or paying Credit Card bills. Credit bureaus in India provide a credit report, and the credit score is mentioned in the report. Credit scores vary from 300 to 900, with 300 being the lowest and 900 being the highest. A credit score of more than 750 is a good score, and there is a possibility that lenders will approve your loan application.
How to Improve Your Credit Score?
The steps you can adopt to improve your credit scores are as follows:
- Paying Bills Timely
Payment is the significant aspect that makes your credit score. Whenever you forget to pay any bill, it will affect your credit score, and several missed payments will negatively impact your credit report. Therefore, always paying bills on time will help you to maintain a good credit score. To avoid late payments, you can set up an email, text, and push notification with the help of your Credit Card issuer. It would be best if you download the Credit Card App.
- Keep Your Credit Utilisation Ratio Low
The more your dues increase, your credit score will bear the brunt. In addition to paying bills and repaying loans on time, the credit utilisation ratio also plays a vital role in good credit scores. It would be best to keep your credit utilisation ratio to a minimum. If you pay your dues on time, that will also help you in keeping your credit utilisation ratio low.
- Restrict Applying for Multiple Credit Cards within a Short Time
Whenever you apply for a Credit Card, an audit will crop up in your credit report, disregarding the approval or denial of your credit card application. During the evaluation process, your credit score might decrease by a few points, but it will be back in some time. Install the Credit Card App on your mobile phone. Even though one credit probe will not affect your credit report, applying for several credit cards quickly might decrease your credit score. Therefore, you should only apply for a few credit cards quickly.
- Ensure that Your Credit Report Details are Correct
It would be best if you keep checking your credit report frequently. If you find any misinformation or any other incorrect details about you, you should immediately report it because the inaccurate information might adversely impact your credit score. It will help you if you check your credit report from the official websites of the credit bureaus operating in India.
- Never Delete Old Account Details from Your Credit Report
A few people might erase previous and deactivated accounts and previous debts from the credit report to make it appear good. It would be best if you keep such information. Using the Credit Card App will help you. Removing previously paid debts and bank accounts that you do not currently use will harm your credit score. If previous accounts have a good repayment history and you erase them, your credit score will decrease. If you paid your dues timely, you should keep them in your report as it will help improve your credit score.
Your credit score might impact your life, and it would be best if you take some easy, simple steps to boost and manage your credit score. There is no riddle about the meaning of credit score and the ways lenders adopt to calculate credit scores since the credit bureaus and Credit Card issuers in India made it effortless for you to check your credit report frequently. You can also use the Credit Card App. If your credit scores are bad, there are ways you can adopt to boost them. It is always easier said than done. The procedure might be challenging, but it is doable.