Credit score is a number generated by a formula based calculation on the details provided in your credit report. Lenders rely on your credit scores to determine if you are a risk for them or not. Higher the credit score means the less the probability that you will default and you will pay back the loan in a timely manner.
If you think that your credit score is not up to the mark, make sure that the information provided in your credit report is correct. If the information in your credit report is correct, carefully read your credit report and lookout for factors that are negatively influencing your score and find ways to improve those factors.
Below are some basic factors that will help you improve your credit score:
• First one is pay your bills on time. The payment of utility bills such as Phone, electricity, etc. do are not recorded in your credit report, but can be considered at any point of time.
• Second is try to pay your debt as quickly as possible.
• Third is making sure that you have a credit history. Having a credit history and having a good number of transactions will help in improving your credit score.
Actions that you take, be it a good or bad, within a time of 2 years will have the biggest impact on your credit score and your credit history. This means that your credit score suffers immediately after a negative remark is reported. Remember ultimately it does not matter how badly you have messed up your credit history in the past, you can always bounce back within a few years if you take necessary steps that will help you to establish a good credit history, clean up the mistakes that you have done in the past, and regularly checking for errors in your credit report.
Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.