Credit Score: Your credit score proves to be very helpful in taking a loan from the bank. Banks easily provide loans if your credit score is 700 or more, but due to the epidemic many people are facing financial crisis. With the end of the Moratorium, many people have not been able to pay the bank loan and credit card bills. This has worsened his credit score. According to BankBazaar, the number of people checking credit scores has increased in 2020. If your credit score has fallen due to Corona crisis too, then there is no need to worry. We are giving five ways, with the help of which you can improve your credit score.
Review Report
First you review the credit score. Then see where you need to improve. It is common to have a credit score mistake. It is caused by a bank making a mistake while giving data. Sometimes it happens that someone takes a loan in your name and takes a loan. If you have any such mistake in the score, complain to the credit bureau and get it rectified.
Dig past records
Your credit score will not improve until your previous record is correct. To improve the record, you must check your previous record. If you have taken a loan from the bank and repay it, then close that loan account. If it is not closed, file a complaint with the bank. By doing this your credit score will improve.
Use less credit
You should check your credit utilization in Trans Union’s CIBIL report. Ideally you should use around 30-35% of your credit card limit. If you have used more then try to bring it down to at least 50%.
Avoid multiple loan applications
Whenever you apply for a loan, the bank checks your credit score. If you apply for a loan again and again, it gets reflected in your credit score and your score is slightly affected. If you apply quickly, the bank realizes that you are in financial trouble. Try to avoid it.
Choose secured loan option
Choose a secured loan option to create a healthy track record. You can also get a credit card against a fixed deposit. Avoid personal loans such as unsecured loans as much as possible. If you have more unsecured loans, then the bank will stop giving loans. If you delay or delay in paying the loan installment, your credit score comes down. Therefore, the loan installment must be paid on time.
Finish the loan, not the settlement
There is also a mention in your credit score that you have repaid or settled old loans. If you have made a settlement, it means that the lender’s risk increases. Similarly, if you have proof of repaying the loan at the right time, then the loan becomes easy.
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