Low Credit Score? Here Are Some Steps You Can Follow To Boost It
If you find any discrepancies, notify the credit bureau to correct them, as rectifying these mistakes can immediately improve your score
Improving your credit score is essential for securing the best loan rates and financial products available in the market. Your credit score is essentially a reflection of your financial history, and the higher it is, the more favourable the terms you'll receive. Improving your credit score requires consistent effort and financial discipline.
If you’re looking to boost your credit score you can follow these simple suggestions to do so.
Review Your Credit Report
Start by requesting a copy of your credit report from the relevant credit bureau. This gives you insight into your credit health. Carefully review the report for any errors or inaccuracies, such as incorrect personal information or fraudulent activity. If you find any discrepancies, notify the credit bureau to correct them, as rectifying these mistakes can immediately improve your score. For any uncertainties, always reach out to your credit bureau’s customer service for assistance.
Prioritise Timely Repayments
Your payment history is a major factor affecting your credit score. Always make it a point to pay your credit card bills and loan EMIs on time. Set reminders or enable auto-pay to avoid missing deadlines. In times of financial difficulty, aim to make at least the minimum payment to keep your payment history intact. Remember, a single missed payment can negatively affect your credit profile for years to come.
Reduce Credit Utilisation
Keep your credit utilisation ratio under 30 per cent of your total available credit. A high credit utilisation rate signals to lenders that you may be financially unstable, which can hurt your credit score. To lower this ratio, pay off outstanding credit card balances or request a credit limit increase. Anything above 30 per cent is considered high and should be addressed promptly.
Limit New Credit Applications
Avoid applying for new credit accounts or lines of credit, as each new application results in a hard inquiry on your credit report, which temporarily lowers your score. Instead, focus on responsibly managing your existing accounts. Be mindful that hard inquiries remain on your credit report for some time, so it’s best to limit new applications during this period.
Diversify Your Credit Mix
If your credit profile is limited or poor, consider adding a small personal loan or secured credit card to your credit mix. Having a variety of credit types and consistently managing them responsibly will gradually boost your score over time.
Top Headlines
