How to improve credit score in India with these 12 financial habits

A rejection of a loan is a bad experience altogether. It happens due to various reasons, and you have probably not fulfilled them. The best way to handle rejection in the loan is to improve your loopholes by understanding where you went wrong. It helps you to get a loan at ease in the future without any rejection. A credit score is one of the most important factors that can get you a loan approval without any hurdle. It takes into account all your past debt, repayment, credit activities, and finances in consideration to offer you loan approval. If you are trying hard to get a good credit score, you need to have few habits. These habits will help you to build your credit score in the right way.Get small business loan in india.

 

• Review your credit report for accuracy and no errors. Sometimes it is not your fault when you find a bad score. If you are updated with your credit report, you can easily find out any loopholes or errors that are bringing your credit score down. The habit of CIBIL score check online will help you improve your score.
• Pay your bills on time without any delay. There is a due date for every EMI, and you need to pay it within that due date. If you miss the payment and delay it, the credit score will be affected. Pay your bills on time, and if necessary you can automate it.
• Pay the full bill amount and not the minimum amount due in the bills. When you pay the minimum amount, there is always an overdue amount. This overdue will affect your credit score and will not give you a good experience. Always clear your bills with the whole amount.
• Keep your 30% of credit limit unused. You cannot use the entire credit limit that is available to you. This will not make you financially responsible and will not speak about stability. Always make sure you are keeping the ratio maintained. Keep your limits unused by paying extra, if you end up using the limit.
• Do not close your credit cards or other accounts. Keeping your account or credit card open will increase the credit age. This age will be very important for a good credit score. You can stop using your cards, but do not close the account permanently as this will hurt your score.
• Do not apply for multiple loan applications. This will drop in a lot of points from your credit score. If you apply multiple times, the loan provider will every time run a hard enquiry on your credit score, and this way you will lose out on your credit score. Have patience and try to improve your score if you face rejection.
• Go for debt consolidation if you have too much debt. When too many debts are there in your financial journey, it affects your credit score. The idea is to consolidate all the debt in one single one so that your credit score is improved. Not only credit score but your chances of debt failure or too many expenses in paying high EMI and rate of interest will also stoop down.

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 Finishing up

To have a detailed understanding, you can visit the CIBIL score check online websites. These websites will give you free and accurate reports of your credit and finance and keeps you updated.