Human beings have a variety of needs. Of which financial requirement is one. Money can be needed for several reasons; purchase of a home, completion of surgery, marriage, and education, etc., Sometimes, people fail to make repayments on time which is why their credit score becomes the victim. Do not worry if you have a poor credit rating because the modern world has modern solutions. Yeah, a few of the financial institutions are ready to offer low credit score loans and credit cards to improve your score. That being said, why not follow ‘prevention is better than cure’ approach?
- Be timely with installments
- Don’t neglect credit card bills
- Review your credit rating
Be timely with installments: This is the most simple method to maintain your creditworthiness. Do not delay fulfilling EMI responsibility. Paying EMIs on debt such as a car loan, personal loan, and home loan can prevent a negative impact on your credit score. Always track the due dates and accordingly ensure sufficient balance in your bank account to avoid being penalized with increased interest and late charges. Missing to pay one EMI on time may not be reported by your lender but negligence to maintain sufficient balance for repayment for more than 30 days can diminish the value of your credit score.
Don’t neglect credit card bills: Most employees often forget to clear their credit card debt assuming that it won’t severely affect their credit score. But the fact is negligence to pay the minimum due can reduce your credit rating. One simple thing to do is contact your credit card company and request to restructure your payments to avoid being burdened with extra fees and interest.
Review your credit rating: Some people get a free credit score report once a year. If you have taken more debt after the review, request the latest credit rating. You can find out errors if any and take them to the notice of the credit bureau for immediate action.
From the above, it is evident that one can maintain the health of their credit score by making timely installments on their debts, and checking credit score after taking on a huge debt. That being said, one can still avail of low credit score loans from financial institutions that are ready to help their customers improve their credit scores.