The year-end brings with it hopes and aspirations for the coming year. It is a time to start anew and bring positive improvements in your life, including your financial health.
Ask yourself, what are your financial goals for 2022? A home renovation, a new car, or maybe a family vacation? And if you plan on meeting these goals through a loan, it is imperative to start improving your credit score as it is a critical aspect of your loan application.
Not sure where to begin? Here are some of the best ways to boost credit scoreefficiently.
Make timely payments
Your repayment history is one of the top aspects that make up your credit report. That is why you must pay your monthly dues on time for a healthy credit score. Whether it is a credit card bill or a loan EMI, you must be disciplined in your approach and avoid defaults. Consider setting automatic reminders to make sure you don’t miss any payments.
Moreover, if you have a history of late or missed payments, it can result in a poor credit score. And you might not be able to secure a loan.
Review your credit report regularly
Monitoring your credit score will help you keep an eye on any changes and make timely improvements. For instance, if you find your score is low, you can instantly address the influencing factors to avoid any issues in the future. Plus, it will allow you to identify any errors and report them immediately. Remember, fixing any errors will only increase credit score. And you can quickly check your credit total for free online.
Additional Read: 5 Habits to Have to Get yourself in the above 800 Credit Score Club
Plan your credit
You might assume that paying your credit card bills and EMIs on time is enough to boost credit score. Well, that’s not entirely correct. Carrying too much balance on your card or having several credit cards in your name can do more harm than good. The lender might see you as highly dependent on loans. Thus, if you have high debt, try to pay it off as soon as possible.
Also, refrain from asking for more than you can afford. You must plan your finances well to ensure timely payments and avoid unnecessary debt.
Limit hard inquiries
Whenever you apply for a new line of credit, a loan, or a credit card, the lender requests to check your CIBIL report to determine your creditworthiness and repayment history. This gets reflected in your credit record. While it does not affect the borrowing process, too many hard inquiries in a short duration can harm your credit score. Therefore, avoid applying for too many loans at the same time to boost credit score.
Additional Read: Tips to Help You on How to Read Your CIBIL Credit Information Report
The CIBIL score is your holy grail when it comes to borrowing credit and following these tips can help you achieve a decent score. Now, if you want a hassle-free borrowing experience with favourable loan terms, Tata Capital can be of assistance. You can go through our loan offerings and conduct an online credit score check on our website today!