How to Improve your credit score
Well its a tricky question and the answer lies in the reasons for your bad score so will discuss two aspects today. first is how to improve credit score & the second is reason behind a bad score. first we will discuss what are those causes which effects your credit score. Not having a pan card is the major reason of 00 credit score or 00 credit history will discuss this further more below. read on.
Reasons for bad credit score or no credit score
There are several reasons which affect credit score like loan defaults credit card bills and more.
1. Don’t ever in your life default, anyone who takes loan from bank must pay it on time and don’t make any defaults in the loan installments. don’t think of taking a loan and not repaying it, it will create a bad credit score in your credit history.
2. Always pay your credit card bill on or before time remember every single late payment in your credit card effects your credit score. so be aware limit your spent and spent wisely which you can repay later.
3. Always have some credit limit remaining in your credit card. using 90%+ limit of a card also effects your credit score. so use only if needed to use more then 90% and later repay it AS soon as possible.
4. outstanding credit card balance , most of people don’t pay the credit card bill in full, they only pay the minimum amount and without their knowledge it generates a bad credit score. so don’t have any out standing balance in your credit card. use and pay it in full, always doing a minimum payment results a decrease in credit score.
So now you know what are the reasons behind A bad credit score so lets. move on to our second topic how to improve credit score.
How to Improve credit score
you know how important is to have a good credit score. so how to improve a bad credit score (if you have a bad credit score)
1. Check your credit report first online for free read our another blog & check it for FREE Online you will get a full fledged report of your borrowings credit cards. check this report carefully, you will get to know what went wrong. you will see the loan & credit cards which are effecting your credit score.
2. Now you know why your credit score is going down. pay all the outstanding/defaults loan or unpaid credit card bills. after paying all your borrowings your credit score will start to build positively,
3. Stop applying for loan & credit until the credit score goes up . applying for a fresh loan and card may not increase your credit score, so don’t apply .
4. Don’t settle credit card/ loans pay them in time many people settle their credit card overdue in some installments but this won’t be helpful never settle your credit card/loans the settlements reflects in your credit report and may harm your credit report permanently
5. Ask for loan/credit cards only if you need, if you keen on getting new credit card/loan the bank will consider you as credit hungry and it will impact your credit score also