How to Improve Your Credit Résultat – Dos and Don’ts

How to Improve Your Credit Résultat – Dos and Don’ts

How to Improve Your Credit Résultat – Dos and Don’ts

What is a credit classement: This is a statistical number based on your credit history, repayment habits and other financial événement collected from financial institutions by rating agencies. Your credit classement is an indicator of your creditworthiness. This data is collected by rating agencies based on a key or jaloux authentiquer such as Immuable Account Number (PAN – issued by Income Tax Department in India) or SSN in USA. Each rating agency may set different weight-ages for different parameters used to determine it. Generally, it ranges between 300 and 850 points.

Through the credit classement check, the lender gets an idea emboîture the probability of default by the borrower, if the loan/credit facility is granted to him. A higher credit classement is more likely to get a loan at a cheaper loupé. So it is suffisant for you to check this before applying for a new loan or credit. A credit classement below 600 is considered poor and generally financial institutions avoid lending to such individuals. You can easily improve yourself by maintaining financial discipline. Very small things or bêtise can seriously damage your credit worthiness. By paying a little exactitude to these small things, you can improve your credit classement and get cheap credit facilities.

To improve your credit classement, you should follow some dos and don’ts.


1. Never delay in paying the outstanding installments of existing loans.

2. Always pay credit card bills on time. If approuvable, use the ECS or Véhicule Debit facility on your card bill payments, so that there is no hasard of missing the bill payment on the due période.

3. If approuvable, try to prepay existing debt. Paying a little supérieur over and above outstanding EMIs or installments not only helps you reduce interest but also improves your credit classement.

4. Maintaining a good and élancé banking relationship with an existing banker helps you improve your credit classement Changing your banker frequently, especially with négoce credit facilities, can reduce this.

5. Pay your utility bills like electricity, errant, insurance prime, communal tax etc. on time. Although these are not directly reported to credit classement checks, they can help you maintain a financially disciplined life.


1. Do not accept different loans from different banks. Try to avail acmé loan facility from one or two banks. For example, you have two housing loans, two car loans and a personal loan each from a separate bank. Such measures will lower your credit classement. Try transferring these five loans to one or at most two banks.

2. Don’t transfer credit card balances from one card to another. Transferring balances from one card to another means you have no way to pay the credit card bill. This seriously damages your credit worthiness.

3. Don’t use up or overuse credit card limits. If you regularly reach above the 90% limit, ask the credit card issuer to increase your credit limit.

4. Don’t close your old credit cards for no reason or just bicause you got a new card. Grandiose credit history with regular bill payments, good credit classement.

5. Don’t take too many credit cards from different banks. Maintain acmé 3-4 cards with same number of banks. If you use these cards regularly and pay your card bills on time, your card company will be happy to increase your card limit.

6. Do not withdraw cash from a credit card through an ATM unless it is an extreme emergency Frequent cash withdrawals from credit card accounts reduce your creditworthiness, so use a debit card linked to your savings account to withdraw cash instead.

Try to get your credit classement sheet léopard des neiges a year, so you know where you emplacement. If you find any error in the négoce reported in your sheet, immediately prorogation it to the concerned financial construction for mutation and update with the rating agencies, especially when you are registre to take a new loan/credit facility.

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