What Are The Best Ways To Build Up

My Credit Score?

The credit score is something that determines how trustworthy you are to
a lender. The market works on speculation. When it comes to lending
money, lenders take care of the previous dents and the history of
repayment to gauge the authenticity and credibility of the borrower. A low
credit score indicates poor payment history, discouraging the lenders from
offering loans. For tips to improve your credit score, you can consult with
the experts of Credit Triangle.

Benefits of Having a High Credit Score

A high credit score can help you get the loans effortlessly. Another
advantage of having a high credit score is that the lenders charge a lower
rate of interest for the same amount of loan. For example, if you have a
poor credit score, a loan worth Rs. 100000 would cost you more than
someone with a high credit score.
Also, with a high credit score, your authenticity as a consumer gets
established. If you have a good score, the lenders will always give you
approval for your loan. On the other hand, a low credit score might not
allow you to get the entire sum you intend to borrow.

A good credit score empowers you with better negotiation power while
borrowing money. No matter what you are purchasing, getting a loan for
the same becomes easier with a high credit score.

Pay Bills on Time

Loaning funds does not hamper your credit score, not paying the interest
and dues on time does. If you think your amount of loan is pulling your
credit score down, you need to change your perception. No matter the
volume of the loaned sum, if you are paying the dues in time, there is no
reason for your credit score to suffer in any way.

If you miss out on a payment by 30 days or more, your credit score is

more likely to get impacted adversely. If you have multiple loans running
at the same time, the best would be to keep a record of all the dues along
with their respective dates of payment to negate the chances of any
miss-out. Maintaining a routine for payments can improve your credit
score.

Pay Frequently

Much like payment history, credit utilisation is another factor that

immensely influences your credit score. With frequent payments, you can
influence credit utilisation, making your overall credit score better. The
idea is to make short payments, often called micropayments, throughout a
month to keep the credit card balance managed.

It can also help you avoid the sudden drainage of a substantial amount of
money from your account at a time. Spreading the entire payment over a
month never leaves your account completely dry. Hence, frequent
payment can be a smart financial choice to manage your accounts and
keep your credit score high.

Rectify Credit Report Errors

If you have wrong entries in your credit report, your credit score will go
down regardless of how religiously you pay the dues in time. Make sure
that your credit report does not have any discrepancies reading any
attribute to keep your credit score maintained.

If you find any issue with your credit report, address the same
immediately to get it rectified. Your reluctance or negligence in correcting
the errors on your credit report will ultimately cost you your credit score.

Get a Higher Credit Limit

To improve your credit score, a higher credit limit can always help you. A
higher credit limit follows the cardinal rule of the numerator denominator
relationship, turning the effective ratio of the credit limit and the
outstanding balance low.
Here, the credit limit acts as the denominator and the outstanding balance
as the numerator. Hence, the higher the denominator becomes, the
decrease in the ratio can be seen, given the same outstanding balance. An
income appreciation or a prolonged history of good credit scores can
allow you to higher your credit limit.

Use Secured Credit Cards

Using a secure credit card can be one of the best ways to improve your
credit score. Credit cards that come with security deposits can be a safer
choice at any time. With a transparent mode of operation and easy to trace
payments, these credit cards always keep you updated regarding the
payment options. If you wish to increase your credit score, choose a
secure credit card today.

Authorised Use

If a friend of yours or a relative has a credit card with a considerable

history and sound score, you can request to be an authorised user. For
allowing you to be an authorised user, they do not have to allow you
access to the account number or any other specifications. If you have a
short credit history, adding such authorised use can improve your credit
status considerably.

Maintain a Mix

Having only a credit card or a loan can be less helpful in improving your
credit score; the best way to improve your credit score would be to
maintain a mix of both revolving credit and instalment accounts. Your
cumulative credit worthiness will only improve if you could manage both
varieties intelligently. You can also seek the help of the service providers
like Credit Triangle to understand the “modus operandi” involved in credit
score determination.

Keep the Credit Cards Open

You might think that removing the cause of a low credit score can be a
way to improve your credit score. In reality, when you close a credit card,
you also remove the credit limit from the credit utilisation calculations.
Hence, your lower credit score dips further, reaching a bottleneck. The
best would be to keep the credit cards open to allow the limits of each
card to influence your overall credit score. Make sure to do the right
things to keep your credit score high. If you have a low one and intend to
improve it, consult with the experts and professionals to know how. Your
credit card can be your guarantee card for getting loans at the right and
even lower rates of interest in the future.
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