How Can I Improve my Credit Score?
Buddy Loan is a loan aggregating platform that offers instant personal loans to help you meet your
personal financing requirements. However, your loan application may be rejected if your credit score or
CIBIL (Credit Information Bureau Limited) score is below 550, it might be due to the following reasons:
1.) Delayed payments of Loan or EMI
2.) Delay in credit card payments (revolving credit)
3.) Making too many credit enquiries
One can improve his/her credit score in the following ways:
1.) Knowing your spending limits:
One needs to be fully aware of his or her spending limits and keep a track on their credit card
purchases.
2.) Making payments on time:
Impulsive shoppers with credit cards tend to make the bill rise beyond their ability to pay on
time. This lower’s one’s credit score and also adds up late payment charges and taxes on to the
bill.
If you put a cap on your credit card usage and make the due payments on time, your credit
score will gradually improve.
3.) Paying the dues in full
Most people fall prey to the minimum due that the credit card companies offer while generating
the bill. Minimum due is generally 5% of the total outstanding amount; and by paying that, one
does avoid late payment fee but the taxes and interest are being charged to the next bill.
All this lowers your credit score. So please try and make full payment on your dues.
4.) Avoid making too many credit enquiries
Multiple attempts of CIBIL enquiries can pull down the score faster. So avoid checking the score
too often.
5.) Use personal loan to clear score of your credit card balance
Forced with default on credit card payments, one can use personal loan to pay off card dues.
Instant Personal loan online comes with a much lower interest rates of 11 to 25% as compared to 30-40% on
credit cards. You can pay off the balance of your card instantly, using the loan amount and in
turn pay off personal loan in easy EMI’s.
6.) Don’t exercise debt settlement
A mounting debt can tempt the debt taker to reduce it by a debt settlement agreement. But
doing so, will indicate your inability to repay the debt; thereby, adversely affecting your score
and shutting the door for fresh credit application.
7.) Check your CIBIL report thoroughly
You can check your credit report online and see if there are any discrepancies in terms of one’s
name, date of birth, email ID, PAN number or in your loan or card account. Please report it to
the bureau so that your if score down due to these discrepancies, it can be corrected.
If you need a personal loan, apply with Buddy Loan online. Click here
personal financing requirements. However, your loan application may be rejected if your credit score or
CIBIL (Credit Information Bureau Limited) score is below 550, it might be due to the following reasons:
1.) Delayed payments of Loan or EMI
2.) Delay in credit card payments (revolving credit)
3.) Making too many credit enquiries
One can improve his/her credit score in the following ways:
1.) Knowing your spending limits:
One needs to be fully aware of his or her spending limits and keep a track on their credit card
purchases.
2.) Making payments on time:
Impulsive shoppers with credit cards tend to make the bill rise beyond their ability to pay on
time. This lower’s one’s credit score and also adds up late payment charges and taxes on to the
bill.
If you put a cap on your credit card usage and make the due payments on time, your credit
score will gradually improve.
3.) Paying the dues in full
Most people fall prey to the minimum due that the credit card companies offer while generating
the bill. Minimum due is generally 5% of the total outstanding amount; and by paying that, one
does avoid late payment fee but the taxes and interest are being charged to the next bill.
All this lowers your credit score. So please try and make full payment on your dues.
4.) Avoid making too many credit enquiries
Multiple attempts of CIBIL enquiries can pull down the score faster. So avoid checking the score
too often.
5.) Use personal loan to clear score of your credit card balance
Forced with default on credit card payments, one can use personal loan to pay off card dues.
Instant Personal loan online comes with a much lower interest rates of 11 to 25% as compared to 30-40% on
credit cards. You can pay off the balance of your card instantly, using the loan amount and in
turn pay off personal loan in easy EMI’s.
6.) Don’t exercise debt settlement
A mounting debt can tempt the debt taker to reduce it by a debt settlement agreement. But
doing so, will indicate your inability to repay the debt; thereby, adversely affecting your score
and shutting the door for fresh credit application.
7.) Check your CIBIL report thoroughly
You can check your credit report online and see if there are any discrepancies in terms of one’s
name, date of birth, email ID, PAN number or in your loan or card account. Please report it to
the bureau so that your if score down due to these discrepancies, it can be corrected.
If you need a personal loan, apply with Buddy Loan online. Click here
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