Many Sometimes in life we take such financial decisions, which spoil our credit score. Then if we need a loan, then due to bad credit score we face difficulty in getting the loan. Therefore, try not to spoil your credit score. Today we will tell you some things, by following which you can increase your credit score.
What should be the credit score?
Credit scores range from 300 to 900. The closer the CIBIL score or credit score is to 900, the better it is considered. A score between 300 and 549 is considered the worst. Similarly, a score between 550 to 700 is considered fair. A score between 700 and 900 is quite good.
Avoid taking too many loans
Try to keep the number of loans taken in a fixed period to a minimum. To avoid a dip in your CIBIL score, repay one loan and then take another. Taking multiple loans at once can reduce your CIBIL score. At the same time, if you take a loan and repay it successfully, your credit score will increase further.
Avoid closing your credit card
If you have old credit cards, you should keep them as long as you can pay your bills in full on time. This will help you build a solid and long credit history. This will improve your credit score.
keep the loan tenure longer
Whenever you take a loan, try to choose a longer tenure for repayment. This will ensure that your EMI is low so that you can make payments on time. This will improve your credit score.
Customize credit limit
Your credit utilization ratio has a significant impact on your credit score. The more you are able to restrict your credit usage to a set limit, the better it will be for your credit score. Reaching the limit has the opposite effect as it lowers your credit score.
Pay EMI on time
Repayment of your outstanding loan can have a significant impact on your credit score. Delay in EMI payment makes you pay penalty and your credit score decreases.
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