A good credit score comes with good credit habits. When you have a good score, it is easy to convince the financial institutions to have an easy and smooth approval process. It is important to maintain and improve your Experian credit score and get a score above 750 so that you are eligible for low rates and easy approval.
Steps to improve and build your credit score
● Don't use too many credit cards: A credit card is not a good habit. It is the most expensive form of loan that you cannot handle when it becomes a burden with a high-interest rate. It leads to default and you end up hurting your credit score.
● Make your payments on time: One such way is paying bills on time. It is important to make on-time payments so that you can maintain your score. The EMI or any bill should be paid by the due date and not after the bill's due date. Paying after the due date will harm your credit score and will present bad credit history. Start working on automated payment options so that you can ignore rejection. Learn How to calculate business loan by using business loan calculator.
● Do not keep applying for loans: every time you apply for a loan, there will be a hard inquiry run on your credit score. This will keep lowering your credit score. If you have a loan rejected, improve rather than apply for a new loan.
● Do not exceed credit limit: Each credit account has a set credit limit. Do not use the credit limit completely. When you exhaust the entire available credit limit, you affect your score without even knowing it. Always pay your bills for the month so that you get back the available credit limit.
● Don’t pay partial bills: Credit card bills should be paid up completely. Do not pay only half or a portion of your credit card bills. The entire amount should be paid or else it will end up with a hefty due charge and your score is damaged already. Don’t pay the minimum balance, but try to arrange money before the due date.
● Don’t close credit accounts: Credit accounts should not be closed, even if you are not using them. Keeping the credit accounts open will increase the credit age. A good credit age will improve your score. Do not apply for new credit accounts and close the old and existing ones.
Finishing up
It is very important to start your credit score check free online if you are willing to borrow any time soon. Make sure your Experian credit score is 750 to get easy and instant approval. If not, you must improve it.
Read More : How to get loans even with a low credit score
