5 habits that can help you maintain a good credit score
  • SUBSCRIBE
  • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    EMAIL ID

    Step 3 of 3

Get The Latest Updates

SUBSCRIBE

5 habits that can help you maintain a good credit score

  • Highlights

  • Low credit utilisation ratio can help you get a good score

  • Keep your old credit cards that have a good credit history

  • Check your eligibility before you borrow a loan

  • Avoid applying for several loans at the same time

Your credit score is a measure of how responsible you are with borrowed funds andacredit scoreof 750 and above is considered to begood, 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 rate of interest 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 full limit month after month.

Don’t cancel old credit cards

As time passes, you may considercancelling your old credit cards. However, note that if you are successfully able to 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 willwork towards bettering your credit score.

Check your eligibility for every new loan that you borrow

With the loan market widening and new financial institutionsoffering loans, you have access to various options when you seek credit. But, this doesn’t mean that you apply for a loan in an ad-hoc manner. When applying for one, ensure that you select a loan option after checkingyour eligibility for the same. This maximises your chances for approval. Doing this is important, as it ensures that your application isn’t rejected, which lowers your credit score.

Things to know about CIBIL Score

Check your CIBIL reportregularly

It can so happen that yourCIBIL reporthas 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 will 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 indicatorthat 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 be able to maintain your credit score and improve it as time goes by.

Bajaj Finserv brings to your pre-approved offers on its financial products such as Business Loans, Home Loans, Personal Loans, etc. Applying for a loan is from Bajaj Finserv is with pre-approved offers quick and easy. You can check for your pre-approved offer by simply adding some basic details.

Personal Loan Instant Approval

Please enter your first and last name
Please enter 10 digit mobile number
Please enter valid Office Email ID
Please select your employer name from list

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

PRODUCT GUIDANCE

Is your CIBIL score getting you down?