It is very important to keep the credit score good. It helps the customer a lot in getting the loan. Banks also offer loans at a lower rate of interest for customers with good credit scores. Maintaining credit scores is not a difficult task. Today, we are going to tell you some of the ways in which you can improve your credit score.
For a healthy credit score, it becomes very important for customers to pay their dues on time. Your credit card payments and your monthly EMI should always be paid to the customer on time. This will always keep your credit score high. Customers should make their credit card payments and EMIs in auto mode.
Normally, premature closure of a loan has a positive effect, but the customer should not choose the settlement option. This happens when the customer owes too much payment of principal amount and interest. On this, the lender offers to close the loan by paying the dues to the customer. This option should be chosen only when you are not in a position to raise any kind of money to repay the loan. If you select this option, yo it affects your credit score for a long time.
The older your credit line, the better your credit score will be. If you have been using a credit card for a long time or your home loan is several years old, it's good for your credit score. If you make a timely payment, you should keep your credit line long. If you close an old credit card account, it can reduce your credit score slightly.
The CUR credit is the utilization ratio. For example, if your card limit is one lakh and you spend Rs 50,000 in a month, your COR will be 50%. It is an ideal situation to maintain your CUR by 20 to 30%.
If you use a credit card or have a loan on you, you should keep checking your credit report from time to time. Moreover, you must see your credit report once in at least three months. This will enable you to know the reasons for the fall of your credit score and fix them on time.
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