Business Desk, Web4Study, New Delhi
Updated Tue, 30 Jun 2020 06:03 PM IST
Improve your credit score in three steps
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A credit score gives information about the creditworthiness of a customer and this makes the bank know the credit history of the customer. It is believed that the better the credit score, the easier it is to get a loan from the bank. Although the credit score range is between 300-900, but a score between 550-700 and a score between 700-900 is considered very good. How can you keep credit score better, you can take these steps …
Do not delay in making a repair
If you have taken a loan or have your credit card left, then do it on time. Failure to do so has a negative effect on the credit score. Maintain discipline for this, which you can also do by applying auto debit and reminders.
Repayment of different types of loans
A person who has taken a loan from someone and has a good record of repaying his debt. In such a situation, this person’s credit score will be much better than the person who has never repaid the loan. A good loan history is required to have a good credit score. This may include secured or unsecured, short and long term or different types of loans.
Must keep an eye on joint account
If you are a joint holder of a loan, it is important for you to monitor the loan repayment. In case of a joint loan, a customer has equal responsibility for payment of EMI. This has a direct impact on the credit score. This thing also applies when you take a guarantee on another loan, the guarantor is equally responsible for the repayment of such loan.
Keep these things in mind too
Customer can get a fresh credit report by paying the prescribed fees on the CIBIL website
Mistakes in credit reports can be corrected by adopting a mistake-correction process