Credit Score Improvement: Is Credit Score Low? How to improve it within a few months here

If you have a 650 or less credit score, it is not easy to get a loan from the bank. Bank or Non -Banking Financial Corporation (NBFC) can invest a high interest rate to accept your loan if scored is low.

If you are planning to take a large loan at the end of next year or at the end of this year, you can try to increase your credit score. There are some testing methods to improve your credit score. These include reducing credit use, completing the loan, consumption of safe credit cards and diversity of credit mix.

Here are the most effective, potential steps to improve credit scores.

7 major tips to follow

1. Check credit report

Get free credit report from Credit Bureau like CRIF High Mark. Identify defects or contradictions and fix them with the Credit Bureau.

2. Pay your bills on time

Late payment on credit cards, loans and emissions should be avoided. You can set auto-P to pay on time.

3. Reduce credit use

Keep your credit consumption less than 30%. That is, your credit limit is Rs. 1,00,000, however, Rs. Use only 30,000. Pay the credit card outstanding amount before the expiration date. If you want to pay the minimum amount, your arrears will get wet.

4. Pay backlog loan:

Pre -on any outstanding loan or credit card bill. If you have several loans, consider the snowball method (pay for small loans) or the absence of the highest interest loan).

5. Take a safe credit card

If you have a very low score, apply on a safe credit card (on a fixed deposit).

6. Diverse credit mixture

By a mixture of safe loan (house/car loan), uncontrolled loans (credit cards, personal loans) can help improve your score.

7. Credit applications do not want the most

Credit applications can often cause credit scores. Wait before applying again if the application for the loan is rejected.

(Note: Loan is accompanied by several risks. Therefore, proper care is required)