Boost Your Credit Score with These Effective Strategies
Maintaining a healthy credit score is crucial for securing loans and mortgages at favorable rates, and it’s vital to be disciplined and vigilant with your financial decisions. Nirmalee Chaterjee (name changed), found this out the hard way when she sought a home loan in March and discovered that her credit score was just 650 due to some missed credit card payments.
To improve her score, Chatterjee committed to a few key strategies that are well within reach for anyone looking to boost their credit score. Firstly, consistent timely payment of dues is key to maintaining and improving your credit score. According to sources at Experian Credit Information Company of India, delaying loan or credit card payments can result in a significant decrease in your score. Chatterjee made it a priority to pay all her credit card bills and EMIs on time, which resulted in a positive reflection on her credit report.
In addition to making timely payments, having a long repayment history and checking your credit score regularly can also work in your favor. It is also important to maintain low credit utilization and avoid making multiple credit inquiries, as these can signal financial stress to lenders.
Lastly, it’s important to avoid actions that could negatively impact your credit, such as reducing EMIs, canceling credit cards, or restructuring loans.
Chatterjee made simple changes to her financial habits and saw her credit score rise to 725, with a goal of reaching 750 in the near future. Like losing weight, improving your credit score takes time and commitment. Depending on your financial behavior, that process might take a few months or up to a year, but the results are well worth the effort. By following these strategies, anyone can work towards a healthier credit score and secure their financial future.