7 Ways To Improve Your Credit Score | Money In Minutes

1. 7 WAYS TO IMPROVE YOUR CREDIT SCORE ASAP For most people today, their credit score is the most critical factor to be considered for the success of their financial plans. This three-digit number ranging between 300 and 900 deeply impacts every financial service that people may be interested in availing. From getting ​fast loans online to receiving the approval of a new credit card, and even with respect to the interest rate being charged on a debt, the credit score of an individual plays an extremely critical role. However, in order to understand the impact of credit score on various financial transactions, it is important to first gain a basic understanding of the term itself. A Brief Overview Of Credit Score The credit score, which is also referred to as the CIBIL score, reflects the summary of the credit history of an individual. In simple terms, the credit score helps the providers of financial products and services assess the creditworthiness of prospective customers. As mentioned before, the credit score of an individual can range between 300 and 900. A score of less than 500 is considered bad, while a score between 550 and 700 is considered fair. However, a 700+ score ensures the hassle-free approval of various financial plans of individuals that involves any creditors or lending authorities. Improving Bad Credit Scores The best thing about a credit score is that it can be improved through some conscious measures taken by individuals. Given below are the brief details of 7 such methods that can be implemented by individuals to improve their credit score at a rapid pace. Make Small And Frequent Credit Card Payments Credit card payments done in time can contribute towards enhancing the CIBIL score in a significant manner. However, people who need to speed up the process of improving their CIBIL score should consider making micropayments throughout the month as a great option. This requires the cardholders to make small payments at frequent intervals all through the month to keep their card balance down and ensure a powerfully positive impact on their credit score. Opt For Customized Credit Limits

2. Since the credit utilization ratio impacts the credit score of an individual quite significantly, having a credit limit that is in accordance with their spending habits is highly advisable. Thus, people with greater spending needs can opt for a higher credit limit, thereby making it easier for them to minimize their credit usage. In such cases their spendings can be restricted within 30-40% of the maximum amount. Check And Double Check Credit Reports The possibility of an error in the credit reports of individuals is quite rare but possible. That is why it is important for people to check and double-check their credit reports for errors and raise disputes over any doubtful entries. Many times getting even a single such entry removed can push the CIBIL score up by a huge margin. Avoid Taking New Debts Of Large Amounts There are several reasons that might force people to apply for a loan, even when their credit score is low. However, it is advisable for such individuals to avoid seeking loans at all, and especially those of significantly higher amounts. If it is unavoidable, such people can opt for instant payday loans​ of smaller amounts only after being sure that they can repay it in time. Start Really Using The Credit Card Many people, despite owning a credit card, use it only sparsely, which might be one of the reasons for their low CIBIL score. Hence, an effective way to improve the credit score at a rapid pace for these individuals is to start using their card like cash. However, it is equally important to ensure timely payment of credit card bills to make this method work. Avoid Closing Unused Credit Cards It is quite common for people having a low credit score who own multiple credit cards to consider the option of closing the ones that they rarely use. However, this decision can impact credit scores negatively as it will erase all the credit history associated with the card and cause the CIBIL score to plunge further. Automate Bill Payments Automating the process of bill payments ensures that all the bills are paid in time and this improves the credit score. Timely bill payments help in building a reliable credit history, which in turn has a deep positive impact on the credit score.

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