Your credit score is a measure of how responsible you are with borrowed funds. A credit score of 750 and above is considered good, as it showcases financial fitness. This gives lenders a reason to view you as a worthy, reliable borrower. In turn, you can get a better interest rate on a loan or get a higher sanction. If you already have a credit score of above 700, here are 5 effective habits to follow to maintain your credit score.
Monitor your credit utilisation ratio
Credit utilisation ratio is a calculation that measures credit usage against your credit limit. This ratio should always be 30% to ensure that your credit score remains stable. To do this, you must ensure that you limit your spending. For example, don't spend via your credit card up to its entire limit month after month.
Don’t cancel old credit cards
As time passes, you may consider cancelling your old credit cards. However, note that if you can successfully maintain them and pay the bills (in full) on a timely basis, your old credit cards will show a richer credit history. In turn, this will work towards bettering your credit score.
Check your eligibility for every new loan that you borrow
With the loan market widening and new financial institutions offering loans, you can access various options when you seek credit. But, this doesn't mean that you apply for a loan in an ad-hoc manner. On the contrary, when applying for one, ensure that you select a loan option after checking your eligibility. This maximises your chances for approval and ensures that your application isn't rejected, which lowers your credit score.
Check your CIBIL report regularly
It can happen that your CIBIL report has errors. For example, your lender may forget to inform CIBIL that you have closed your loan. Regularly checking your CIBIL report will bring to light such errors and allow you to correct any mistakes at the earliest, thereby maintaining your credit score.
Take one loan at a time
Borrowing many loans at the same time is an indicator that you are greedy for credit. As a result, it lowers your credit score. So, a good way to keep your score intact is to ensure that you don’t take multiple loans simultaneously. Prioritise your needs and take loans one at a time to keep a high score intact.
As long as you implement these measures, you are sure to improve your credit score as time goes by.
Bajaj Finserv brings to you pre-approved offers on its financial products such as business loans, home loans, personal loans, etc. Applying for an instant personal loan from Bajaj Finserv with pre-approved offers is quick and easy. You can check for your pre-approved offer by simply adding some basic details.
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.
*Terms and conditions apply
