Factors You Must Know That Can Lower Your Real-Time Credit Score
One of the most important parameters for credit score is to get the best loans and credit cards. This is the most imperative manner by which you can manage your real-time credit score. Considering, you have a credit score of 700 or above, you are sure to own easy credit on behalf of your score.
But, there are certain rules that must be followed while making a credit score. Often people overlook these rules and are drawn towards actions that can have negative effects on their credit score even though what they intended to do was positive.
Check out the different pointers that can lower real-time credit score
There are a series of actions that can lead to a lowered credit score. Let's take a look at the top 5 pointers that can be avoided.
1. Not applying for too many credits at once
The most effective way to grow your credit score is to enhance digital lending in India
Borrowing and paying back money on time can have a great effect on the credit score. But
taking out too much of credit can be credit can be harmful. Even the method for rendering a credit will be hard, especially for the report.
2. Delay in the repayment of bills.
Dues taken need to be repaid at the right time. As one of the key components of the credit report, any delay in paying back the loans should be avoided. Further, if the delay continues regularly, it can have diverse effects.
3. Closing the credit card
When an individual decides to close the credit card, it drastically lowers the entire credit limit. Since the real-time credit score makes up for 15% of the FICO score, it is essential to growing that score at a very young age.
4. Co-signing on debt
Co-signing on a credit card or loan for a family member can have adverse effects on the credit score. The debt obligation will be visible on the credit report and if there are any missed payments, that will also be shown on the credit report.
5. Inquiring regarding too many credits
Credit requests have a positive impact on the score, but if digital lending in India happens too often, asking the customer to look out for credit inquiries continuously, can have negative effects. Only if the existing credit cards are handled properly, the credit score is likely to improve.
Keeping a check on the credit score regularly helps to track the credit account and factor the credit scores. Further, you will also be sent, free copies of credit reports every 12 months from nationwide credit bureaus.