It is very important to have a good CIBIL score to avail home loan, car loan and personal loan at the lowest interest rate. With its help, you can easily get a loan when needed. But in today’s time it is quite difficult to create a good credit score. Even a small mistake can bring your credit score down significantly. Today in this article we are going to tell those ways through which you can strengthen your credit score.
Do not inquire about loan again and again
Whenever you inquire for a loan in any bank or NBFC company, your credit report is seen by the bank or NBFC. It is believed that once the bank checks the credit report, the CIBIL score reduces by 5 to 10 points. For this reason, repeated loan inquiries should be avoided.
Pay EMI on time
The easiest way to maintain a good credit score is to deposit your EMIs on time. To pay EMI on time, you can choose the option of auto debit from your bank account. This will not delay your EMI.
Use lower credit card limits
It is okay to use up to 40 percent of the credit card limit. If you exceed your credit limit, you will be considered credit hung and your credit score will be negatively impacted.
Do not take unsecured loan
If you repeatedly take unsecured loans, this will also lower your credit score. Due to this, you will be considered a very financially unstable person in the eyes of banks and your credit score will reduce. For this reason, a personal loan should always be taken only when there is great need.
repay loan early
If your loan is ongoing, it should be repaid in full before the completion of its tenure. This increases your credibility with banks and has a positive impact on your credit score.
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