Have you found yourself in this situation? You apply for a personal loan and are rejected! Even after having a good income and job employment, you can get a personal loan rejected straight away. This can happen due to a low credit score. You are not alone in this situation. Many individuals are getting loan rejections just because of their low credit scores. A credit score is a priority for financial institutions when considering loan applications.
But don’t worry! There are easy fixes that will take your crumpled credit history and remodel it to look like a shiny new Aston Martin! There are actually several ways in which you can improve your credit score and get back on track with good credit and financial health. Without a good credit score and eligibility, it becomes near impossible to get approval for affordable loans in the market. Therefore, it becomes compulsory to maintain good credit health along with eligibility in terms of loan requirements. If you want to trade your CIBIL score for an Aston Martin, here’s everything that you need to do.
Pay Your Bills On Time To Trade Your CIBIL Score
It is very important to maintain a clean track record of your existing loans and credit cards. Paying bills on time makes it very essential to maintain a good credit score. Whether it is your credit card bill or your monthly installment of ongoing loans, you need to be very careful about the due date. Payments take around 25% of your credit report, which means it is an essential factor. If you maintain a good credit payment history, your credit score will eventually increase. On the other hand, if you find it difficult to make payments by the due date, your credit score significantly decreases. Make sure you find every possible way to pay your bills on time. You can automate your payments or set reminders. Make sure to keep a clean record so that your credit score improves with time.
Keep Your Credit Account Open
It is always a safe option to keep your credit accounts open to improve your credit score. Credit accounts, like existing loans and credit cards, always add positively to your credit score. If you have any credit account with a long credit history of timely payments, it contributes toward credit building. Even if you don’t use your credit cards, keep your credit accounts open. If it has a long financial history with a clean track record, it will be very easy for you to improve your credit score. Make sure you are only keeping credit accounts with good repayment and a clean track record open. Keeping negative credit accounts open will damage your score further.
You Can Trade Your CIBIL Score By Paying The Entire Amount Of The Bill
When you try to improve your credit score, the priority should be to pay the full bill amount without keeping any outstanding. If you end up keeping any outstanding or overdue amount on the bill, it will eventually reduce your credit score. Even if the credit card offers a minimum payment option, you should not opt for the same. It is critical to pay the bill in full, leaving no overdue or pending balance. Spending the money on credit cards and loan payments will not only make it more expensive, but it will also harm your credit score. Therefore, it is important to make wise decisions while borrowing or spending so that you’re able to pay the full bill amount. Learn How to calculate business loans by using a business loan calculator.
Do Not Apply For More Than One Loan
It is very important to stop yourself from applying for multiple loans within a short span of time. When you keep on applying for multiple loans, the hard inquiries on your credit score damage your score further. Stop applying for multiple loans when you face a loan rejection. It is important to work on loopholes other than applying for multiple loans. It is always a safe option to avoid hard and/or query runs on your credit profile. You need to apply for a loan only when it is very important for you to get instant funds during an emergency. It just always seems to be that individual skill of applying for credit cards even when there is no need. Such activity will definitely not help you improve your credit score.
Get a Good Credit Mix
It is important to have a balanced credit mix that has both secured and unsecured loans. Do not keep taking only secured or unsecured loans. For example, if you have taken an unsecured personal loan, you should take a gold loan instead of taking the same unsecured loan again. A good credit mix always makes it very easy for you to improve your credit score.
Wrapping Up The Trade Your CIBIL Score
One of the best ways to improve your credit score is by checking your credit score for free on various online platforms. Examine various digital platforms, such as Clix Capital, that provide a CIBIL score check online free option.