- HOW IT WORKS?
- Credit Score & Report
- Credit Bureaus
Improve Your Credit Score: Overview
You can improve your credit score as it will help you to get the credit at the times you need. Your credit approval depends on your creditworthiness and also the size of the loan you have applied for. Undoubtedly with some efforts, you can improve your credit score and can become more creditworthy again.
The range of the credit score might be anything around from 300 to 900. The higher the score the more the opportunities in getting credit and on the contrary the lesser the score the lesser the opportunities in getting credit.
- Paying bills on time – Undoubtedly, timely payment of your debts not only helps in avoiding paying any extra charges but also helps to improve your credit score.
- Don’t exceed your credit limit – Always ensure not to exceed your balance more than 30 % of your credit card limit.
- Opening of credit accounts – Open new credit accounts only if it is needed and opening new credit accounts doesn’t help you in improving your credit score
- Using Secured Credit Card – If you are having any bad/low credit scores or if you do not possess any credit card history it is better to opt for a secured credit card.
- Never close your unused credit cards – Don’t close your old credit cards and to increase your available credit never open a number of new credit cards when you don’t need.
- Never settle your credit cards and loans – When you opt for a settlement of your loans and credit cards due to some reasons the term settlement will reflect in your credit score and this will have a negative effect on your score
- Check your credit report and fix mistakes if any – It is always better to check your credit report and check if any mistakes or if you’ve been the victim of fraud or identification theft.
What Is the Best Way to Raise a Credit Score?
Undoubtedly, having a good credit score helps you to get credit at the times you need it. There are several effective ways to increase your credit score. Some of them include
- Paying your bills on time – Timely payment of your bills and debts not only helps to avoid to pay any extra charges but also to raise your credit score.
- Avoid exceeding your credit limit – Ensure you don’t exceed your balance more than 30 % of your credit card limit.
- Using Secured credit Card helps – Undoubtedly, using Secured credit helps in raising your credit score
- Don’t close your unused credit cards – Not closing your unused credit card helps in raising your credit score and don’t open a number of new credit cards when you don’t need it.
- Don’t settle your loans and credit cards – Due to certain circumstances never opt for settlement of your loans and credit cards as it reflects as the settlement in your credit report and it will have a negative effect on your score.
- Check your credit report, fix errors -Check your credit report and fix errors if any. Sometimes there could be a possibility of identification theft or fraud.
- Set up reminders – Always set up your payment reminders that will help you to make payments on time. Many financial institutions and banks provide your email and SMS alerts regarding payments and availing those services helps.
Improve credit Score FAQ’s:
1. Do high utilization of credit limits and late payments have the negative effect on your credit score?
A higher pattern related to utilization means more repayments and it would have the negative effect on your credit score. Over the years if you have missed any couple of payments on any of your loans, your credit score would be affected negatively
2. Does more number of unsecured loans affect your score?
Yes unsecured loans, if there are more in number would affect your credit score in a negative way, as there are more likely to result in defaults when compared to home and car loans.
3. What are the simple steps to improve your credit score?
- Always focus on paying the full payment on your credit card if it is not possible never miss making the minimum payment.
- To get a clean credit history, timely payment of EMIs helps you.
- If your utilization of credit limit is low you will have a positive effect on your credit score.
- Repayments that are prompt can help you boost your credit score.
- Regularly reviewing your history related to your credit helps to calculate and plan your financial health in a better way
4. Can my credit score can be improved?
Credit score is a representation of your entire history related to borrowing. Timely payments, taking more secured loans as compared to loans that are unsecured and by never missing a payment related to credit card and loans, the score will improve gradually.
5. Implications of high or low credit score
A credit score is a 3 digit number that a lender uses to decide to know your creditworthiness. The credit score range is usually from 300-800.
The lower the credit score, the lower the chances of getting credit and if you get a loan you will be charged high interest and you have to provide collaters.at the times you need it, on the contrary, If you have a high credit score you will get loans with good interest. Timely payment, using credit card responsibility, checking your credit report, setting up payment reminders and managing your credit responsibility helps you to get the good credit score.
6. What is the highest credit score you have actually seen?
The credit score ranges from 300 to 900. Anything above 750 is considered is as good credit score however, 900/900 is the highest credit score.