A good CIBIL score is essential in order to get a smooth access to credit. If your CIBIL score is high, you can expect lucrative interest rates, easy approval of credit cards and easy availability of loans. If it’s low, well, don’t worry because we have listed a few steps that can help you achieve an amazing credit score.
The first step is to delete your debt. It’s advisable to pay off the debt with the highest interest rate first. Doing so will help you save more money and will reduce your overall debt burden. Further, a lot of people believe that they need to get rid off their credit cards to improve their credit score. However, this is not true as 15% of your credit score is determined by your credit history. So if you close credit card accounts, you close that credit history. Next step is to keep your credit card utilisation low. A 10-30% utilisation is usually considered ideal out of your overall credit limit. Lastly, you should pay all your dues on time to refrain from paying hefty interest on the outstanding amount. If you are earning a steady income, it’s best to set up a direct debit card to ensure all bills are paid at the right time. Hence, if your credit score is low, take some time to improve it using the four steps mentioned above. A good CIBIL score would not only help to get credit easily but will also help to get the loan at better interest rates.
Also Read: How To Get an Amazing CIBIL Score
The first step is to delete your debt. It’s advisable to pay off the debt with the highest interest rate first. Doing so will help you save more money and will reduce your overall debt burden. Further, a lot of people believe that they need to get rid off their credit cards to improve their credit score. However, this is not true as 15% of your credit score is determined by your credit history. So if you close credit card accounts, you close that credit history. Next step is to keep your credit card utilisation low. A 10-30% utilisation is usually considered ideal out of your overall credit limit. Lastly, you should pay all your dues on time to refrain from paying hefty interest on the outstanding amount. If you are earning a steady income, it’s best to set up a direct debit card to ensure all bills are paid at the right time. Hence, if your credit score is low, take some time to improve it using the four steps mentioned above. A good CIBIL score would not only help to get credit easily but will also help to get the loan at better interest rates.
Also Read: How To Get an Amazing CIBIL Score
Comments
Post a Comment