Credit score is an important factor which helps you get a home loan sanctioned. If you want to get a home loan sanctioned, you must have a good credit report. It will help you secure the home loan easily.
There are various factors that play an important role in building credit score like credit utilization ratio (CUR), payment history and clearing dues and loans. However, if you have a low credit score, these are some tips to improve your credit score:
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Review your credit report on a regular basis:
There are various credit portals which allow you to check credit score for free. You can check your credit score as often as you want called soft enquiries. This will help you keep track of your credit report and credit score.
By staying informed on your credit score, you can make better decisions. You can take the necessary steps that are needed to improve your credit score. You can also get errors rectified and keep the hard queries at bay by checking your credit report online. Check free credit report and credit score on IndianMoney.com.
Make timely repayments:
Paying your loan EMIs and credit card dues on time, helps create a better track record of repayments that has a positive impact on your credit score.
Close unused accounts:
As per Indian money Review closing credit cards is not an option in case you want to improve credit score. However, closing the unused accounts won’t damage your credit score. Closing an unused bank account or credit card account will save you from incurring the annual fees and will reduce the risk of fraud on these accounts.
Fix Your Credit Utilization Ratio:
Credit utilization ratio is a key factor in determining your credit score. Generally, a good credit utilization ratio must be less than 30%. That means you’re using less than 30% of the total credit available to you.