CREDIT SCORE
5 EFFECTIVE TIPS TO IMPROVE CREDIT SCORE
Credit Score
A credit score reflects your creditworthiness or ability to repay borrowed amounts. It is often represented as a CIBIL score.
Credit : PEXELS CIBIL Report
Regularly check your CIBIL report for any errors that may negatively impact your score. If you find any errors, report them to your credit card issuing bank.
Credit : PEXELS Timely Payments
Failing to pay your credit card bills by the due date can lower your credit score. Late payments incur high interest charges, late fees and penalties.
Credit : PEXELS Good Mix Of Credit
A balanced mix of credit is important for a good credit score. Your credit portfolio should include a variety of loans with different risk factors.
Credit : PEXELS Credit Utilisation Ratio
To maintain a healthy credit score, it is essential to manage your credit utilization ratio, possibly below 30%.
Credit : PEXELS Keep Old Accounts Open
Avoid closing old credit cards or accounts, as this can negatively affect your payment history and lower your credit score.
Credit : PEXELS