By- Srushti sharma
Here are some tips to improve your credit score
Ensure prompt payment of existing loans EMI's and credit card bills, signaling responsible borrowing and significantly influencing your credit score.
Timely repayment
Maintain a credit utilisation ratio below 30% by judiciously managing your credit limits, as lower ratios positively impact and enhance your credit score.
Optimal Credit Utilisation
Steer clear of frequent loan or credit card applications within a short timeframe, as this behavior may suggest credit hunger and adversely affect your credit score.
Avoid Rapid Loan Applications
Foster a balanced mix of secured loans ( i.e., Home and vehicle loans) and unsecured loans(i.e., Credit cards and personal loans) to positively contribute to your credit scores.
Balanced Secured and Unsecured Loans
Retain old credit cards and loans, as the longevity of credit accounts positively influences your credit score, emphasizing the importance of maintaining longstanding credit relationships.
Preserve old credit line