A credit score is prioritised by every loan provider at the time of approval or setting the rate of interest for a particular credit account. Based on an individual's credit score, the creditworthiness is represented. Therefore, if you are planning to take any kind of loan, you need to build your CIBIL score. It is easy to build a credit score with the right financial activities and factors and do CIBIL score check from time to time to know the factors that impact your score positively.
Payment history for discipline Payments are an important factor that impacts your credit score positively. It is important to make your payments for credit cards and existing loans by the due date. If you have a tendency to forget the due dates, you can always automate your payment or set reminders. A clean track record always helps you get a good credit score. Individuals with a long repayment history without any defaults or delays actually get a lot of advantages from the loan provider. It is important to prioritise payments in order to build a good credit history. Credit utilisation ratio that is balanced The credit utilisation ratio is the ratio between the total credit limit offered and the total credit limit utilised by the individuals. It is not a good credit habit if you utilise the entire credit limit. A balanced credit utilisation ratio always impacts your credit score positively. If you are trying to improve your credit score, you need to maintain the ratio at 50%. Read Here : What is a Business Loan EMI Calculator? A saturated credit mix Mismanagement in the credit mix always damages your credit score. If you keep a saturated credit mix in your credit profile, it impacts your credit score positively. Make sure when you are borrowing that you always have secured as well as unsecured loans in your credit profile. Keeping only unsecured loans on your credit history will not impact your credit score positively. Keep your credit accounts open Credit accounts are vital when it comes to the credit building process. If you have a credit account with a long credit history, you should keep it open. In order to keep the account open, you don’t need to use it. When credit accounts are active on your credit profile, it helps in building your credit score. Pay your bill without leaving any money on the table If you have any outstanding bill amount or monthly instalment to pay, you need to pay the entire bill amount. Avoid paying the minimum amount due on your credit cards.With an overdue credit account, it becomes difficult for you to improve your credit score. Make sure you pay the entire bill amount without keeping any past dues for the month. Wrapping up A CIBIL score is important to get an affordable loan. You can initiate a free CIBIL score check on the official website of Clix Capital in order to track the improvement and detect errors. Must Read : What is the Importance of a Good Credit Score?
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Ajay Singh
Looking to apply for a personal loan but don’t know what is your credit score? Don’t worry as now you can check credit score for free at Clix Capital. Just enter a few details about yourself like your name, mobile number, email, pin code, etc. and get the most accurate credit score with a matter of seconds. |