By Admin 
If you want to take a loan from any bank or financial institution, then the credit score is your first identity. Banks decide on the basis of this score whether you have to give a loan or not and if you want to give it, on what conditions. People who have good credit score, they not only get loans easily, but also get facilities like low interest rate and fast processing.
If your score is low, do not get upset, you can make it better with some correct decisions and a little caution. But remember, it does not happen in one night, so the sooner we start, the better it will be."Text-Align: justify;"> Report makes mistakes
The first step is to check your credit report carefully. Many times there are some entries that are wrong, such as a payment ‘pending’ has been shown while you have paid that. Such mistakes should be improved immediately.
Credit uses low
If your total credit limit is 20 lakhs, then try not to use 30 percent i.e. more than 6 lakhs. This makes you look as a responsible borrower. If needed, keep more than one credit card, so that the load is not high on a card.
Create healthy credit mix
Instead of only one type of loan (eg just personal loan or just credit card), make a balance of different types of debt. Like & ndash; A credit card, a personal loan and an auto loan. This makes your financial profile strong. However, do not try to take excess debt. Just keep a balance that benefits the credit score.
Pay outstand on time
A single late fee or default of any EMI or card payment can cause a decline in the score. So try to make every payment on time, whether it is small or big.
Do not turn off the old card
If you have an old and active credit card, do not close it. The older the card is, the longer your credit history record and the positive signal for the score.
How long will the effect be seen?
Improvement is a slow process to improve credit score, but if you start now, the difference will look clear by the end of the year. You will be easy to get a loan and you can also get better interest rates.
Take the right step now
If you are planning to buy a house, take a car or take a loan for a personal need, then the preparation of the credit score is as important as EMI’s plan. So start from today itself. Check your report, repay outstanding and make yourself a better borrower.