Loan from a bank loan loan or credit card It is very important to have a good credit score to get. If your credit score is bad, the bank cancel the loan application. The bank does not even issue a credit card. However, it is not that you cannot repair or improve your credit score. If you take a few steps, your credit score will improve in just 6 months. After that, the bank will easily issue a loan loan or credit card. They will also charge low interest from you.
First of all, you should check your credit report and make sure there is no wrong information. For example, some payment may be shown as ‘pending’ but they are filled. It also damages the credit score. Correcting this can improve the credit score.
If you are using a credit card, it is advisable to keep the credit use less than 5 %. For example, if your total credit limit is 90 lakh, then keep the credit usage 90 thousand. Doing so will improve your credit score.
In addition, another strong note for improving your credit score is to use various credit options like credit card, personal loan and car loan. It also helps improve credit scores. If you do not need a card or a home loan, you should not choose it.
The most important thing is to make sure you are paying your loan EMI or credit card bill on time. Missing a single payment can lead to a significant reduction in your credit score. So fill in your EMI on time. Also, do not deactivate your existing and old credit cards. The duration of your credit card helps maintain a good credit score.
Suppose you applied for a lot of loans or credit cards in a short period of time (or even if you are always close to your credit limit). In such cases, you may be known as “Credit Hunger Biwier” or displaying someone who is widely dependent on credit.
Credit Bureau will track such applications and they will consider a person’s credit qualifications as a reduction. That means your credit score is likely to be reduced.
To prevent this, try to borrow only when necessary and make sure you do not approach your credit card limit. Also, try to complete a loan repayment before taking another loan.
If you have applied for a loan or credit card and the application has been denied, you should avoid applying for credit for some time. Because your application (and rejection) information will be reported in your credit report and your score may be reduced.
