5 Habits to maintain a healthy Credit Score

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Habits to maintain a healthy Credit Score

Credit score is a three-digit number which stands for your creditworthiness & also to determine your credit worthiness for loans and credit cards.

The repayment standings are all based on your credit score. It is important to have good credit score and maintain its progress.

Let’s look at a few of the habits that lead to a good credit history, and hence can lead to a good credit score.

Make regular and timely repayments as scheduled The first element you need to Know is to maintain a regular repayment schedule. Many people set up calendars with important dates and due amounts marked on it.

Once money is set aside basis the priorities, you can be at ease for the rest of the month as the bills are taken care of.

Run regular checks on your credit utilization This ratio is not just for your credit card, but your overall credit limit which includes your loans and credit card limits together.

A regular behaviour of credit utilization may adversely affect your credit score.

you can approach your card issuer and request to increase your credit limit or get another credit card if you have dropped your Credit Score.

You must ensure that you keep a track of your expenses. A second card will increase your credit limit and you have to properly take care credit payments.

Double check loan deeds and lease before co-signing It is important to understand that their activity on those co-signed documents can affect their credit health too.

The documents signed are for family members or partners where trust lays the foundation for your decision.

It is wise to enquire borrower’s credit history before deciding. Even if the score is good, make sure they are timely repaying of their loan EMIs and credit card dues.

Make Enquiries for Credit Wisely Every time you enquire about a loan or credit card to your banks, they get your credit score to evaluate how well you have handled credit. This is considered as Hard inquiry which when overused influences your credit score.

Checking your own credit score directly with the bureaus is considered as soft enquiries which don’t pull down your credit score.

Keep a regular tab on your Credit Score A credit report is a history of your credit accounts. It includes everything from your settled and closed accounts to those that are currently running.

One should check their credit report and score with the bureaus to ensure that all the data are correctly reported by lenders and shown in the credit report.

Any dispute on the same should be raised with the credit bureaus or respective lenders for correction.

You can get both your Personal Credit Score and Business Credit Score by applying directly on the link mentioned below: https://cir.crifhighmark.com

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