Piyush Bang
Today, financing has become easier than ever before. With a high credit score, getting your loan approved is now easier and quicker. However, individuals with poor credit history find themselves struggling to secure loans because lenders consider the individual’s credit score before lending.
What is a credit score?
A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history. Lenders use credit scores to evaluate the probability that an individual will repay his or her debts.
How important is a credit score?
The credit score works as a first impression for the lender, the higher the score, the better are your chances of the loan being reviewed and approved. A good credit score makes you eligible for higher loan amounts and loans at better terms.
How to improve my credit score?
In case you have a poor score i.e. a score that’s lesser than 700, you can undertake the following measures to boost your score easily:
– Timely payment of debts with no defaults
Lack of repayment or delayed payment will immediately reflect in the individual’s credit score. We recommend making your EMI or bill payments on time every month to steer clear of bad credit.
– A healthy mix of unsecured and secured loans
Maintaining a balance between unsecured and secured loans make you a more viable choice for lenders. The secret to maintaining a good credit score in India is to develop trust with on-time payments.
– Watch out for any incorrect listing in your credit report
Be sure to check up on your credit history to rectify bad credit immediately. Additionally, in the case of joint accounts, it is essential to keep a tab of the expenses being made on a joint account to keep a healthy score for both the parties involved.
– Having a good credit history
Good payment history is the most important aspect when calculating a credit score. As potential lenders are unaware of your repayment practices, they can consider it risky or reject your application based on your inexperience with credit
– Crossing the credit limit
Utilizing your credit card limit monthly indicates a proclivity to spend more. Thus, it can impact your ability to pay installments and your credit score. Keeping a tab on your spending will translate to a low balance and good credit.
Keep track of your credit score and make adjustments as necessary. With Credit Fair, apply for a personal loan with a credit score of 625 and get your loan approved instantly. With our quick approvals and flexible EMIs, you can improve your credit score and eliminate the issues in obtaining loans.