Ways to Improve Your Credit Score
Mar 28, 2017 Legal Guidance
A good credit score is important for getting home loans approved. Loan buyers can get their credit score report, before applying for any loan, through any of the four credit bureaus- CIBIL, Experian, Equifax or Crif High Mark. Credit score anywhere between 750 - 900 is considered as excellent score, whereas if the score is less than 675 then the buyer has to improve the score before applying for any home loan. The advantage of a good score is that it can help a buyer to get an attractive rate of interest for the loan, which can reduce the amount of monthly EMI.
There are ways through which the credit score can be improved:
1.Critical measures
If you have a low credit score, it is advised that you check with the lender’s record. There might have been some error while documenting. You may have repaid the loan, but the lender’s record might still show some outstanding amount against your name. It is better to get it checked and rectify it.
Disagreement and feud with the lender over payment of dues and an outstanding amount can decrease the credit score.
It is important to make the credit payments on time. Delay in payments reflects badly in credit score. If you have failed to make any payment due to unavoidable circumstances, make sure that you pay it as soon as you are able to.
It is better to unify all the loans that you have taken a single one. It helps in increasing the credit score.
While repaying the credit card amount, many people pay only the minimum required amount and settle the rest with the bank. This is a not advised as the rate of the credit card loan are very high. If you are doing this, then replace the credit card loan with a personal loan to increase the credit score.
2.Long term measures:
If you have a number of loans in your name and don’t have the ability to repay them right away, it can only be remedied with time.
When a person inquires with the bank for the loan, it gets registered in your credit score. Try not to enquire with too many banks and do the research yourself before approaching the bank.
Despite all efforts, if the credit score is still low, there are agencies like Credit Sudhaar, etc. that can help you in increasing the credit score. These companies can help you in getting secured and unsecured loans. They inform the buyers about the right credit score that you should have according to your financial status. They also tell you about the right percentage of credit that should be on your credit card.
There are ways through which the credit score can be improved:
1.Critical measures
If you have a low credit score, it is advised that you check with the lender’s record. There might have been some error while documenting. You may have repaid the loan, but the lender’s record might still show some outstanding amount against your name. It is better to get it checked and rectify it.
Disagreement and feud with the lender over payment of dues and an outstanding amount can decrease the credit score.
It is important to make the credit payments on time. Delay in payments reflects badly in credit score. If you have failed to make any payment due to unavoidable circumstances, make sure that you pay it as soon as you are able to.
It is better to unify all the loans that you have taken a single one. It helps in increasing the credit score.
While repaying the credit card amount, many people pay only the minimum required amount and settle the rest with the bank. This is a not advised as the rate of the credit card loan are very high. If you are doing this, then replace the credit card loan with a personal loan to increase the credit score.
2.Long term measures:
If you have a number of loans in your name and don’t have the ability to repay them right away, it can only be remedied with time.
When a person inquires with the bank for the loan, it gets registered in your credit score. Try not to enquire with too many banks and do the research yourself before approaching the bank.
Despite all efforts, if the credit score is still low, there are agencies like Credit Sudhaar, etc. that can help you in increasing the credit score. These companies can help you in getting secured and unsecured loans. They inform the buyers about the right credit score that you should have according to your financial status. They also tell you about the right percentage of credit that should be on your credit card.
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