You should pay your utility bills on time. Though utility bills are not reported in your CIBIL report, but many private utility service providers may report late payments to credit reporting agencies which affect your credit score.
Getting a loan is usually a daunting task. Many times, it is even more cumbersome than the payment of the loan. Apart from complex legal formalities, there are many things that hamper the process of your loan approval and low credit score is most common among all of them. If your credit scores are becoming stumbling block in your loan approval process, here are few quick tips to improve credit score.
ñ Having a credit card can actually help you to be eligible applicant for loan. If you can’t qualify for a regular credit card, you can buy secure credit card with which you get credit lines equal to your deposits. It is advisable to buy a card that is reported to all significant credit bureaus.
ñ Make sure to pay your EMIs on time. If you are responsible and punctual with relevance to your current loan payments, it will surely improve your credit score.
ñ It is important to pay down your credit cards and avoid credit card default to increase your credit scores. Generally, you should try to make the balance of each of your credit card at least 30% below the credit limit. It is advisable to give preference to paying down the credit cards close to their credit limit at first.