A credit score is considered synonymous to financial health of an individual. Thus, maintaining a good credit score indicates that the person is in good financial health. A good credit score can help a person in following ways :
- To achieve low interest rates on loans and credit cards
- To get higher credit limit on loans and credit cards
- To get Easier and faster approval on loans
- To achieve better rates on insurance policies and other financial products
Hence, it won’t be wrong to say that there are numerous perks associated with maintaining a good credit score. So, Let’s look forward to some of the tips that might help you boost your credit score:
- Pay your dues on time : Whether it’s an EMI for your home loan or a credit card bill, always remember to pay your dues on time. One can use auto-debit facility and payment reminders to avoid missing dues on time. This is the most important factor that goes into the logic for calculating your credit score.
- Maintain a low credit utilisation : It is important that you don’t repeatedly exhaust the limit on your credit card. Instead, it is considered to better to have multiple cards and maintain a low utilisation on each credit card.
- Avoid unnecessary credit card/ loan applications : When you apply for a loan/ credit card, the creditor makes an enquiry to the bureau for your latest credit report. Too many of such requests could bring down your credit score. However, as a consumer you can also check your credit report from time to time and this has no effect on your credit score.
- Keeping old credit cards : Maximizing the length of your overall credit history can also help you boost your credit score by a few percentage points
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