Credit woes? Here are 10 tips to improve credit score

Are you looking for a quick fix to your depleting credit scores? Don’t worry as you are on the right page that will help you sail through your difficult times.

Take a look at these 10 tips to improve credit score and relax.

Scan credit reports: Developing this habit will let you know if you have been delaying the payments or if any misinformation has cropped up or there has been any fraudulent activity. This habit will help you fix your credit scores by reporting it to the credit bureaus and getting it rectified.  

Opt for credit repair agencies: These can be like your guardian angles if you happen to land up with the right company. These companies take over the responsibility of dealing with challenging items such as reviewing your credit reports, dealing with collection agencies, lenders and so on.

Prioritize debts:  Adopting a well-planned strategy will help you become debt-free soon. Financial experts have advised concentrating on paying off the smaller debts first and then moving on larger ones. You could also try getting rid of those debts that have a higher rate of interest.

Find a co-signer: Having a co-signer guarantee your loan ups your credibility. This is because the cosigner would be committing to pay the balance in case you are unable to repay the amount. Having a cosigner potentially lowers your rate of interest, reduces the amount of Equated Monthly Installments (EMIs), and keeps your credit scores shining. 

Avoid debt settlements: Also known as credit score settlement and account settlement, this provision could be tempting for those who want to get the lenders off their back. But the lenders report it to the credit bureaus and it stays on your credit report for several years. You could try talking with the lenders to restructure your installments as per your convenience to keep your scores soaring high.

Avoid hard hits: When you apply for new credit it incurs a hard inquiry which hurts your scores. So, to keep your scores intact, apply for a loan only when you need it and avoid too many applications frequently.

Pay twice a month: For those struggling with finances, they must try to pay their credit bills twice a month to keep the balance to a minimal. This saves you from paying high interest on the balance and ensures the credit utilisation limit is never exceeded.   

Never discard old credit history: Your credit history length is a reflection of how you have managed your reputation. It is proof that you have paid your bills on time each month and as a result of it, there has been an improvement in the credit scores year after year.  

Have a healthy credit mix: A good credit mix having a diverse financial portfolio. It could have a combination of secured loans such as home or automobile loans and unsecured loans like credit cards and personal loans. Maintaining a mix of credit displays an overall greater sense of responsibility towards your finances.

Use reward points: These are like icing on the cake. Redeeming reward points allows you to make purchases or avail discounts and save your money. This eventually helps you improve your credit scores.

Conclusion

So, if you keep following these 10 tips to improve credit score, we assure you a sparkling and secure financial future.

Never let a poor credit history rating embarrass you

Did you ever face embarrassment and dejection when your credit application is rejected on account of poor credit history rating? Well then you need to learn a bit more on why it is important to have good ratings.

So, let’s start from the basics. First of all, let us understand that the ratings are awarded by certified credit rating agencies to companies to demonstrate a history of responsible borrowing. This means that when companies apply for loan to expand their business or to meet their expenditures, the prospective lenders take a look at it to assess the borrower’s creditworthiness. They use it as a tool to understand whether the applicant will be able to repay the borrowed amount or will falter.

The scale is an amalgamation of aphla-symbols that ranges from A++ to D.  And when the ratings are high, the lenders are more than happy to extend the loan and the amount gets disbursed within no time into your account and depleting ratings can get the loan application rejected.

So make sure your company has a history of good credit ratings and ranks high on the rating scale. Take a thorough look on the tips that will tell you how you can have a rocking credit history rating.

Make timely payments: It is a principal rule to pay off your debts first. This is because any late payments ranks on your credit rating report and could reflect in the history for years depending upon the intensity of the lapses you make. Simply put, every missed payment will create a negative impact to your credit score.

Tip: Try prioritising your credit and pay off the smaller loans and move on to the next ones.

Maintain credit utilisation ratio: Overspending could ruin your credit utilisation ratio and create a situation of possible default. This could eventually lead to a reduction in your credit score.

Tip: Keep the debt utilisation ratio well under 35%. Doing so will help you pay off the loan without any trouble.

Avoid any hard inquiries: Every request you make for a new credit gets registered as a hard inquiry and frequent hard inquiries tag you as a person who is desperate for money and probably is unable to handle the finances. This goes against your reputation.

Tip: Opt for loan only when you need it the most. Otherwise making constant inquiries can hamper your credit history rating.

Never opt for debt settlement: When you approach your lenders to agree for debt settlement, it means that you will have to pay less than the actual amount you owe. This will get the lenders off your back, but in reality it would be reported to the credit bureau and the same will get reflected in your credit report. This blot would stay on the report for years.

Tip: Try proposing the lenders to restructure the loan repayment as per your convenience. 

Conclusion

So, if you follow these steps and keep your credit history rocking and in shape, you will always have an upper hand while dealing with lenders.

Need a gateway to happy future? Check your credit score now

There are a lot of people who just flip aside the credit report when they receive it from the credit bureaus without analysing their scores. Most people are not worried if the scores are good or bad or if there are aspects that need to be worked upon.

But we warn you that people who practice this often regret it in the days to come when they really need money and apply for loans. So, believe us when we tell you that it is necessary to keep an eye on your score on a regular basis as it will help you have a great financial future. Good scores can literally get the world at your feet as it will convey a better credit look about you to your lenders.

So, here are a few more reasons why you should check your credit score and how they become a gateway to help you live a better life.  

Helps negotiate loan conditions better: One of the major benefits of good credit scores is that it enables you to get an upper hand to negotiate with lenders in terms of loan interest rate, tenure and so on. This means that if the credit scores are brimming and shining, and you are aware of it, you can talk it out with the lender to lower the interest rate and can get a convenient term period, which means that the less money you pay in the form of interest. The faster you'll pay off the debt and the more money you have for other expenses. Also, if the scores are good, the processing and disbursal of all types of loans gets completed within no time.

Better knowledge of your finances: If you checkyour credit score on a regular basis, it will help you get a better understanding of your monetary status and you also get to know the areas where you need to pull yourself up. It helps you understand if you have been in impulsive investor or are overusing the available credit limit or need to pay your bills before the billing cycle.  

Reduce monetary disasters: The exercise of thoroughly scanning your scores reduces the possibilities of fraudulent activities, discrepancies, incorrect entries, and more. Also, it helps you spot wrong information that has been accidently put on your report on account of mistaken identities or identical names.

Conclusion

It is important to understand that many people skip reviewing their credit scores and they could be doing it for various reasons. They could do it either because they are too busy with their daily chores, or probably they do not know how to read the report or they are yet to realise the importance of going through it minutely. But whatever the reason be, it is a huge mistake they make which reflects in the form of poor scores.

So, if you too are not in the habit to check your credit score, then develop it fast as it is an important step to a happy financial future.

How Good Credit Scocer Could Help Qualify for a Home Loan?

Everyone dreams to build a home of their own and in fact, this is the one asset that they struggle throughout their life for. However, the hard truth is that with the rising real estate prices, it’s probably not possible, especially for a salaried individual, to buy their dream home with their savings alone and this is when home loan comes as a great savior. Home loan is an important financing instrument to buy a property. Although, as it requires a long-term commitment to repay the loan amount along with the interest within the stipulated tenure, lenders are keener to learn about the credit standing of a borrower.

As a matter of fact, a person’s credit score is a reflection of their financial well-being, and thus, it is the very first factor that the lenders check while evaluating the creditworthiness of an applicant. Lenders pull out the applicant’s credit scocer in order to assess the repayment capacity and credit history over the past years. These factors work as critical indicator to determine how disciplined you are with your finances.

Understanding credit score:

A credit score is a numerical representation of a person’s creditworthiness, which shows how likely the person is at risk to default the repayments. The scocer ranges from 300 to 900, where 700 is considered fairly good, while a score above 780 is considered excellent by the lenders. While applying for a home loan, if you have a score above 700, the chances of loan approval are quite high as compared to the applicants having a score below 700.

Benefits of having good credit score for home loan:

• Better approval chances – If you’re planning to apply for a home loan any time soon, then it is significant to keep your credit scores in a good range as it will improve your loan approval chances. In fact, the lenders will keep you on the priority list in order to process your home loan application. This will reduce your waiting period to get a nod from the lender.
• Enhanced credit limit – There are definitely a lot of privileges for having good credit scocer as prospective creditors leave no opportunity to give their borrowers extended benefits for maintaining higher scores. Applicants with a score above 750 generally qualify for a higher credit limit than the applicants with poor credit standing.  
• Negotiation power – Applicants who have a good credit health generally have a power to negotiate on loan terms such as rate of interest, loan tenure, and loan amount. In fact, such applicants can borrow home loan at comparatively lower rate of interest and could even get the processing fees and other additional charges waived off. 

Role of Real credit score in overall financial decisions!

At some point of time, we all have received sales call, at least once, briefing about pre-approved loans and credit card offers based on our real credit score. So, you see how important and vital it is to maintain good credit scores to ensure healthy financial management. Creditors are more interested in getting individuals on board who have a good credit standing and have proved to manage the finances quite well over the past years.

Your credit score determines a lot more than your bank balance and in fact, gives you power to negotiate on certain loan terms such as rate of interest and loan tenure. Hence, in order to get the best loan deals, you certainly cannot avoid your real credit score. Moreover, the benefits are not just limited to the loans, as your scores also play a major role in other segments such as insurance premiums, securing a job, and getting a house.

Insurance premiums:

Whether you’re buying two-wheeler insurance or personal health insurance plan, your insurer would always be curious to know about your financial standing to determine what amount of premiums you would be able to pay on time. Therefore, this is the reason why most of the insurers today pull an applicant’s credit report before zeroing down on the premium rates and sum assured value. A poor credit score could cost you higher premiums each year, while an excellent score could help you save hundreds of dollars from paying additional premiums.

Securing a job:

As people are getting more and more aware in terms of finances, an increasingly common and somewhat controversial practice of checking credit report of new prospective employees is also taking place at several companies. While this is a hot topic of debate as many would agree with the idea; others feel that a person’s financial standing is his/her personal thing and an employer shouldn’t interfere in it. Well, no matter what you feel, many employers do check for an employee’s credit score to determine the level of financial responsibility and how trustworthy they are to handover company’s accounting details.

Home tenants:

Yes, with the growing bluffing cases, many house-owners nowadays prefer pulling real credit score of a new tenant to ensure that would pay the house rent on time and have a good financial standing so far. However, the concept is primarily popular in metro cities, but II-tier cities are too heading towards checking the scores.

Hence, it is no doubt to say that the effects of credit score are not just limited to borrowing a new loan or a credit card, but is effective in other significant segments as well. 

Key benefits of keeping Scocre credit health online in good shape!

With the rising social competition, people are leaning more ‘n’ more towards loans and credits in order to maintain their social status. In the race of getting loans and credits more frequently, most of the people don’t pay heed to their Scocre credit health online and how important it is to maintain a good credit health to make your financial life more stable and much easier. Yes, your credit score plays a major role in your overall purchases and financial decisions on any later date.

In fact, there are plenty of reasons to maintain a good credit health. Let’s check out what makes credit score a prominent part of our financial life.

1. Easy loan approvals – When you have a clear credit history of timely payments with no negative remarks, you’re bind to get easy loan approvals. Potential lenders don’t take much time to approve loan and credit applications having a good credit score. It is a clear sign that the applicant has made all the past repayments on time and is highly creditworthy. In fact, lenders offer pre-approved loans to such applicants due to their excellent credit score.
2. Credit card with enhanced rewards – Today, credit cards have become a man’s best friend to bridge all the financial differences. Credit card companies give exciting rewards to its users to enhance their overall banking experience. The experience becomes even better when a cardholder receives premium rewards and bonus points for maintaining excellent credit health.
3. Lower interest on loans and credit cards – When your Scocre credit health online is in good shape, you have got power to negotiate for lower interest rates on loans and credit cards. Interest rate is the cost of borrowing and often, it is directly linked to an applicant’s credit score. If your scores are not in good range, you might have to pay higher interest rates and comparatively higher finance charges on loans and credit card balances. Hence, the better your credit health is, the lower will be the cost of borrowing.
4. Higher credit limits – Your borrowing limit has a direct connection with your income and credit score. Thus, when you have good credit health, you ultimately qualify for a higher credit limits. The potential lenders are impressed by the way you have demonstrated your past repayment record. This become specifically beneficial when you require big-ticket loans like home loan and car loan.
5. Better insurance rates – Though most people often overlook insurance benefits of maintaining good Scocre credit health online, but little did they know that even insurers use credit scores to determine the premium rates and sum assured. A person with bad credit scores might have to pay higher insurance premiums. 

Reasons to check your credit scores at Scocre India

Today, people are getting more ‘n’ more aware in terms of financial management and keep a regular check on their credit scores and credit reports. But, sadly, there are still people who rely upon unauthentic source of information because it comes for free. Though there is nothing wrong about checking credit reports online for free, but at the same time, it is also essential to identify how accurate and reliable the source of information is. Scocre India is a platform that assures you to provide authentic information in terms of your credit report and credit score, while guiding you through the path of being in a good financial health.

There are various reasons to check your credit score online via Scocre India, a reliable platform for every individual.

Rebuilding and maintaining good scores – Having good credit score is as important as having good physical health. However, despite deliberate efforts, people often make certain common mistakes like skipping a loan EMI or carrying heavy balance on credit cards. So, if you have had made the same mistake and now wants to rectify it at the earliest, then Scocre is your go-to option. The platform guides you through filling the gap and rebuilding your credit health and enables you to monitor your credit progress.

Assist you in personal financing – Your credit report is an important part of your personal finances. In fact, it is a mirror reflection of how well you manage your finances. While it is significant to check the credit reports regularly, it is also essential to keep a record of your spending habits. This will help you identify your monthly budget and what amount of surplus remain after all the deductions. This way you can plan your future finances, like whether you can afford to get a car loan or home loan without hampering other expenses.

Rectify the errors – It often happens with most of the people that their credit report shows an outstanding loan balance, which they have already paid off. Usually, people don’t pay heed to such errors and over the time, such errors poorly impact one’s credit score to an extent. Therefore, Scocre India helps you identify any such error, report it to the credit bureaus, and get it rectified as soon as possible, so that it won’t last for longer on the report and negative impact can be reversed. It also helps you identify the credit frauds to prevent any misuse of your confidential information at any given time. You can conveniently report any suspicious activity in your credit account to the credit bureaus before it’s too late.

Hence, get a complete guide to your credit health only at Scocre India.