Tuesday, 22 September 2015

How to get a better credit score?

Prevention is better than cure”, as the saying goes, one must take necessary steps not to get into a situation that adversely impacts the credit scores since it can adversely impact one’s financial well-being. Small steps taken to maintain credit score can go a long way to meet the financial goals set out by an individual. 

  1. Credit cards while give a lot of flexibility to its holder, it also lures one to purchase beyond the repayment capacity. Use your credit cards wisely. It is also important for one to understand the functionalities and do not fall pray for ignorance of terms of use.
  2. It is as important to manage your credit well as it is to have continued access to funding since the latter is dependent on former. So do make timely payments for all your outstanding amounts. There should not be any delay in the repayments.
  3. Do not make enquiries on loans or any other credit facility unless there is a need. Making frequent loan enquiries will reflect the person as credit hungry and dent the credit score.
  4. In case of a dispute or past issue, please resolve it amicably with the lending institution. Any delay in resolution can grossly impact your credit worthiness and can severely impact the credit scores. In case of a negative flag reflecting on your credit report, it is advised that you get in up with the respective bank and pay off the outstanding amounts. Also do follow up with the credit bureaus and bank to have the correct status updated on the credit bureau report.

  5. It is highly recommended that one must regularly review the credit bureau report and check for correctness of data. In case of spotting an error on record, the same should be taken up with the concerned bank and credit bureau immediately since it has the potential of negatively impacting your credit score.

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