It’s often said money can buy anything. You can buy Health Insurance with money, but money will not help you buy health. Ever heard of a Credit Score? Put simply, a Credit score is a barometer of your financial health. It is important for you to maintain a healthy Credit Score.
Read on to learn about the best ways by which you can improve your Credit Score and maintain good financial credibility.
- Make Timely Repayments
Stick to payment deadlines. A Car Loan EMI or your Home Loan, Credit Card dues or a Personal Loan EMI – ensure that you make payments in time. Missing repayment deadlines will adversely impact your Credit Score.
Tired of keeping track of pay-by dates? Opt for an auto-debit facility and the dues will be automatically debited from your bank account.
- Avoid Being Credit Hungry
Applying for Credit Cards and Loans are not the same as window shopping at the mall. Applying for multiple Credit Cards and Loans across banks are all reasons to dent your Credit Score. For example, when applying for a Car Loan or a Home Loan, it is advisable not to apply with multiple banks and then choose the one that offers you a Loan. If you apply with multiple banks, chances are that all of them may decline your Loan and you are more likely to come across as someone eager for credit irrespective of your repayment credentials.
- Use Credit Cards Responsibly
Keep track of your spending habits and use Credit Cards responsibly. Many people succumb to the temptation of Credit Cards because it offers them a buy now, pay later advantage. Some others apply for multiple credit cards that they do not need, in the hope of increasing their overall Credit limit. The irresponsible use of Credit Cards will lead you to becoming a victim to Credit Card debt.
- Monitor Your Credit Score
When was the last time you checked your Credit Score? If you can’t remember, then now may be a good time for you to check your Credit Score. If your Credit Score is low, work towards gradually improving it.
Most people only worry about their Credit Score prior to applying for a Loan and if they find their score is too low, they get no chance to rectify it. So make it a point to monitor your Credit Score periodically and plan short-term and long-term financial goals to further improve your Credit Score.