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Improve Your Credit Score with These 6 Time-Tested Hacks

By Finserv MARKETS - Jun 3,2019
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A good credit score can, not only get you a loan easily but also the desired credit card with the most lucrative benefits. A CIBIL score is a three-digit number, that ranges from 300-900. A good credit score is above 700 and in a world where your financial credibility is of utmost importance. It is prudent that you take every measure needed to maintain a good score. That is why, we have listed six hacks that will help you maintain or improve your score.

Here is the hacks to improve your credit score

1. Take Care of Your Payment History

Your credit payment history comprises of the major portion of your credit score. So, if you want to improve your credit score, clear all your existing debts first. The longer you keep the bill pending, the longer it will reflect on your credit history.

2. Keep Your Temptations in Check

Do not apply for multiple credit cards if your application has been rejected; Remember, every time you apply for a credit card, the lender checks your score and your score takes a hit. This also gives the impression that you are desperate for a credit card and sends out the wrong message. Wait for some time and then only apply for the next card.

3. Reduce Your Debt-To-Income Ratio

Debt to income ratio is the amount of money spend compared to the amount of money you earn. The higher the ratio, the lower will be your score. Hence, if you have a high debt to income ratio, you must start paying off your debts immediately to improve the score.

4. Report an Error When You See One

It is possible that your credit score could have errors in spite of making regular payments. If you spot any error, instantly bring it to the notice of the authorities and get the error rectified. Once the error is rectified, your corrected and updated score will reflect on the system.

5. Time Your Payments Well

Before you apply for your credit card or loan, ensure you clear your dues first. If the lender pulls your report close to the billing period, then the debt will be higher. This may create doubts in the lender’s mind. Therefore, ensure you clear all your dues before any credit enquiry.

6. Closing an Old Credit Card? Think Twice!

If you’re considering closing your credit card, think twice. If your credit card has a good repayment history then we urge you to continue that. Your payment history is considered an asset in this regard. So, if you have a good credit utilisation ratio with your existing card, think hard before you decide to shut it down.

These practices will enhance your credit score and make your life easier. With us, you can apply for a Bajaj Finserv Personal Loan in the easiest, quick and hassle-free way. What’s more? You can take advantage of a plethora of feature and benefits like hybrid flexi loans, customized offers etc. right from the comfort of your home. So why wait? Head over to our website and apply for a personal loan online with us, today!

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522