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Easy tips to improve your credit score

Mumbai: Credit score  is a numerical representation of your financial trustworthiness. A good credit score  influence everything from loan approvals to interest rates. An individual’s credit score, which ranges from 300-900, represents your creditworthiness and assists lenders with risk assessment. A higher score typically indicates better financial discipline and lower risk.

Here are five tips to boost your credit score:

1. Pay Your Bills on Time:

Timely payment of your credit card bills, loan EMIs, and other dues is crucial for a good credit score. Late payments can have a significant negative impact on your score.

2. Keep Your Credit Utilisation Low:

Aim to use less than 30% of your available credit limit. High credit utilisation can indicate financial distress and lower your credit score.

3. Maintain a Mix of Credit:

A healthy mix of secured (like home loans) and unsecured credit (like credit cards) can positively impact your credit score.

4. Avoid Multiple Loan/Credit Applications:

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Every time you apply for a loan or a credit card, the lender checks your credit score, which results in a hard inquiry. Multiple hard inquiries in a short period can reduce your score.

5. Regularly Check Your Credit Report:

Review your credit report periodically to ensure there are no errors or unauthorised transactions. If you find any discrepancies, report them immediately to get them corrected.

 

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