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    Credit Score Blog

    Uploaded by

    Garima Singh
    Credit score

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Credit Score Blog

    Uploaded by

    Garima Singh
    4 views3 pages
    Credit score

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

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    Credit score

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views3 pages

    Credit Score Blog

    Uploaded by

    Garima Singh
    Credit score

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Improving your

    Credit Score
    The current era is driven by competition. People in the present time are striving to take
    every step through which they can elevate their career and living standards. To achieve the
    desired standards of living, a person sometimes needs to take borrowings. Credit Score plays an
    important role in this course of action. No finance company will be willing to give you a
    personal loan or any kind of borrowing if your credit score is below the desired limit.
    Given below are some of the proven ways to improve your credit score and live a life that
    you have seen in your dreams for real.
    Take borrowings for a longer tenure
    It is common that people takes loans for personal or commercial purpose. However, it is
    necessary to carry out advance planning related to tenure prior to acquiring a borrowing.
    Whenever you take a loan, usually try to take a loan with a longer tenure available for
    repayment. This allows you to ensure that your Equated Monthly Instalments (EMIs) are lower
    and thus easier to be repaid in a timely manner. Your credit score automatically improves when
    you do not make any default or delayed in payment of EMIs.
    Keep the right mix of credit
    Another proven way to improve your credit score is to keep the right mix of credit. This
    means that you should choose a combo of unsecured and secured loans, for short term as well as
    long term to build a favourable credit score. Having too many borrowings of one kind may
    impact upon the credit score in a negative manner. So, think about the credit score before
    deciding the nature as well as the tenure of the borrowing.
    Take Person Loan to repay credit debt
    Having too much debt of credit card may be one of the primary reasons for low credit
    scores. The interest rate charged on credit card debt is almost 30% as against almost 15% on
    personal loans. So, instead of having mounting debt of credit card, it is better to take a personal
    loan and repay the dues. The interest rates of personal loan are relatively lower and the
    repayment of personal loan can be done in Equated Monthly Instalments. Thus, this will help
    you to improve your credit score and easily take loans, if needed in future course of time.
    Avoid excessive credit
    Most of us in the current time fall into the trap of taking credit cards and consequently
    making purchases that may not be needed presently anyway. The limit of our credit card lures us
    to take different products or services on credit, thereby piling up the bill for repayment.
    1
    However, one thing which is often forgotten by most of the people is that purchasing excessive
    with the funds of credit card also increases the probability of delayed repayment or non
    repayment. Such instances not just lower your credit score beyond an acceptable limit but also
    result into addition of late payment charge to the overall bill. This further causes a dip in your
    credit score. So, be wary of taking too many items via the credit card or your CIBIL score will
    fall below, making it difficult for you to take borrowings in future.
    Never think of leveraging Debt Settlement Agreement
    Having fallen into the trap of constantly increasing debt, you may consider the option of
    signing the agreement of debt settlement with the lenders. This will help in reducing the debt but
    it will definitely indicate that you are unable to repay the debt upon your own. The direct impact
    of the same will be upon the reduction of your credit score, almost closing the doors for any new
    loan applications. So, you may consider to take the loan for a longer tenure so you can repay it in
    stipulated time but do not even think of the option to sign the debt settlement agreement.

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