A bad credit history can not only hamper your chances of a loan or Credit Card approval but can also decrease your chances of securing a good job. Read on.
Ignorance can be bliss in some cases, but not when it comes to your Credit Score. A good Credit Score can make or break your loan or Credit Card application. With a good score, you can get better deals and quick approval. And that’s not it! Did you know your Credit Score has a major impact on your employment prospects too?
Recently, employers in India have started considering your Credit Score as a part of background verification while assessing you for a new job. A few sectors such as telecom, banking, insurance etc. have started examining the credit history of potential employees to determine their financial stability. The candidate is asked to submit their credit report at the time of their interview.
So, apart from giving your best in the interview, you now have to make sure you have an impeccable Credit Score too. Usually, a Credit Score of 750 and above is a reflection of responsible credit behaviour. The higher your score, the better you look to lenders and employers alike.
Check this: Credit Score – Frequently Asked Questions
As more and more organisations are seeking credit history of job applicants, here are a few simple tips that can help you maintain a good Credit Score:
Check Your Credit Report Regularly
Get in the habit of checking your Credit Score and report frequently. It will help you weed out any inconsistencies that can lower your score. By annually assessing your credit report, you can ensure that the information reflected is accurate and without any discrepancies.
Also, checking your Credit Score often doesn’t hurt your score. When you request your score from a credit bureau like Experian or Cibil, it goes as a soft enquiry and, therefore, has no impact on your score. So, go ahead and check your score as often as you like.
Check this: Why Your Credit Score Isn’t Improving
Set Up Payment Reminders
Your payment history matters a lot. Set up reminders for your different payments like loan and Credit Card EMIs to avoid late payments that could dent your score.
Don’t Crave For More Credit
Frequent requests for increasing your Credit Card’s limit, exhausting your credit limit and applying often for loans are considered as traits of over-hungry borrowers. As a rule of thumb, you should only use 30-40% of your available credit limit to avoid damaging your Credit Score. And you shouldn’t apply for too many loans, especially if you’ve been rejected many times before.
Pay Your Bills In Full
It is indeed tempting to pay only the minimum amount due on your Credit Card. However, not paying the entire outstanding amount can cost you a fortune in the long run. Plus, it can also lower your Credit Score. So, make it a habit to pay your entire Credit Card bill every month and before the due date if you want to improve your Credit Score.
Click here to get your FREE Experian Credit Score in less than 3 minutes.
Additional Reading: Maintain A Good Credit Score To Be Financially Independent
These simple steps can help you boost your Credit Score drastically!
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