Improve Your Credit score: You can create a good credit score by paying loan or credit card EMI on time. But in the absence of these, how can one create a good credit score? We will explain this to you.
Credit Score: The importance of credit score has increased a lot. Now it has become almost impossible for you to buy a house or a car without a good credit score. You can strengthen your credit score by making timely payments of loan or credit card. If you have not taken a loan or credit card then calculating the credit score becomes very difficult.
This only decides who will get the loan and how much. Whether a credit card will be made or not and what will be its limit. Here we tell you how to increase and maintain your credit score so that you can easily get a loan when needed.
How to increase your credit score
To have a good credit score, it is very important to keep your financial transactions strong. Your credit card plays the most important role in this. If you keep making credit card payments on time, your score also becomes stronger. Only through a good credit score, banks and financial institutions are able to decide your ability to take and repay loans. However, your credit score can be strengthened even if you do not have a credit card.
Take a loan from a bank or financial companyÂ
You should try to take a loan from any bank or non-banking financial company (NBFC). By repaying the installments of this loan on time, your credit score will start strengthening. Try that your installment does not bounce as it has a negative impact on your credit score.
Pay bills on timeÂ
Pay electricity-water bills and rent on time. This will have a positive impact on your financial health. Its effect will be clearly visible on the credit score. This shows that you are responsible towards your financial responsibilities.
Keep receipts for rent paymentÂ
If you live in a rented house, make sure that you have the payment receipt every month. These can be used while taking loan. The lender will also see that you can be a responsible borrower.
Build a strong job recordÂ
If you want to get the loan easily then keep a record of a long job with good salary. Even if you have other assets and investments, the lending bank or NBFC gives great importance to your job so that their EMIs come on time.
Can also knock the door of P2PÂ
Apart from banks and NBFCs, you also have the option of going to peer-to-peer (P2P) lenders. These are the people who give loans through online platforms. If you want to avoid the lengthy paper process of banks and NBFCs then P2P can be a good option. However, timely payment of EMI is most important for a good credit score.
