How to improve your credit score

When you applied for the loan or credit card in the bank card the bank first consider  your CIBIL score or credit score the credit score plays an important role in loan application process lower credit score will  the of getting loan large   In  my country The Reserve Bank of India has compulsory  that all banks must check the CIBIL rating of each and every loan/credit card applicant at the time of issue if have  lower credit score for the reason bad credit payment history and you want to improve it you can help credit repair company there are  many reasons for lower credit score I list some of the reason for improving your credit score

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1.Credit Repayment History

The most important measure of your credit score and makes up roughly 40% of your score. Basically, it measures how often do you make payments on time. So, if you’d like to improve your score – the best thing you can do is to make payments on time on all your credit and loan obligations

2. important Things You Can Do Right Now

Check Your Credit Report – Credit score restores begins with your credit report. If you have not already, request a free copy of your deposit record and check it for errors. Your credit score record contains the statistics used to calculate your credit score and it may additionally contain errors. In particular, check to make certain that there are no late payments incorrectly listed for any of your bills and that the quantities owed for each of your open accounts are correct. If you locate errors on any of your reports, dispute them with the credit score bureau. for  rectification

3 .Set Up Payment calendar

Making your credit payments on time is one of the largest contributing factors to your credit scores. Some banks provide charge reminders via their online banking portals that can send you an email or text message reminding you when a fee is due. You ought to also consider enrolling in automatic payments facility have repayments mechanically debited from your  bank    account

4. Genuine financial hardship


If for any reason you missed your payments earlier because of a loss of a job or other unforeseen circumstances, then it is advisable to pay back the amount to the bank when your financial situation is better. If you have a clean credit history that will help you in enjoy better credit terms in the future.

5. Right mix

Maintain a healthy credit mix: It is better to have the right combination of secured loans (such as Home Loan, Auto Loan) and unsecured loans (such as Personal Loan, Credit Cards) of a long and short tenor to build a good credit score. Too many unsecured loans may be viewed negatively

6. Eradicate the balances

Firstly, do away with those credit card balances. Only spend as a whole lot as you can repay inside the billing date. By balances, we additionally mean any unpaid dues on loans. Talk to your financial institution and negotiate to shut your loan account by paying off any unpaid dues.

Such outstanding dues or heavy balances on credit cards decrease your score in the future . Paying off this quantity will positively mirror on your CIBIL score. Also, it is better to have just one or two deposit cards; it becomes simpler to hold tune of repayment

7 . BUY  credit statement

Buy your CIBIL Score and Credit report statement. This will cost you only Rs. 500/- and you can have access to the credit report within 3 business days this will help in matching further

8. Increase your credit limit

When you ask your financial institution to raise your credit   limit, it does no longer necessarily imply that you get a chance to spend beyond your limit  This hike can have a range of plus points, if you manage your savings wisely

It simply means that you have a lot more credit available at your disposal, and if you keep your credit utilization low, it will have a positive impact on your CIBIL score. That said, please ensure you don’t spend beyond your payment  capacity

9. Review your credit report

Review your credit history frequently throughout the year:

How to improve the CIBIL Score? Monitor your CIBIL rating and Report often to check for any inconsistencies.  At times, CIBIL may make mistakes when it comes to updating your records, incorporating incorrect information against your report and delay in recording details. Sometimes a loan you may have repaid may not have been updated on the credit report, which could have a negative impact for you. If you notice such errors, get them rectified instantly

10. Disputes with the lender on account of charges or annual fees
Before taking up any credit card or loan, one should always go through the terms and conditions thoroughly. One ought to always inquire about the charges (one time and recurring) such as maintenance charge, fees, issuance charge, processing charge, penalties, interest rates, transfer charges, pre-closure charges and so on

11. Disputes with the lender on account of fraud on your credit card
In case of fraudulent transaction, the bank will look at the depend and rely on the findings a charge returned may additionally or may also now not be issued. Such disputes need to be resolved between you and the Bank so as to ensure your credit history is not/minimally impacted

 
Read also- how to protect your credit card from fraud  

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Deepanshu sharma

HI friends I am Deepanshu Sharma is the person behind COMINGBLOG.COM I share with you some extra personal finance tips and helping you become financially independent,

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