Friends, often due to our poor credit score, we are not able to apply for a credit card or loan when needed .
And this often happens at a time when we are in great need of money.
If you too are not able to take a loan or credit card due to your bad credit score, then here I am telling you some useful tips which can help you in rebuilding your credit score.
Not only this, through these you can also improve your credit score quickly. ( Improve Credit Score )
Why does credit score get bad?
Often, due to some small mistake of ours or deliberately not paying the bank loan or credit card taken on time, our credit score gets spoiled.
Our financial transactions are monitored by government institutions. And that is why everyone is given a certain score on the basis of their government documents like PAN card which is usually between 300 to 900.
In this, minimum score of 300 and maximum score of 900 is given. Whenever we apply for a credit card or loan from any bank, the bank checks our score and gives us the card or loan only if it is correct.
CIBIL has complete information about your credit score in India, and you can also see this report on the basis of your PAN card.
How to improve bad credit score quickly? (How To Improve Credit Score Quickly?)
If you also want to improve your bad credit score quickly, then let me tell you some methods which can prove to be very effective for you.
Pay all your old bills.
If you have not yet paid any of your old transactions, you may face a lot of trouble in improving your credit score.
Because the bank will not give you NOC due to old outstanding amount, due to which your name will appear as a defaulter in your credit report.
Therefore, if you pay your dues and take NOC from the bank, then this report will not have much impact on your credit score and you can rebuild your score.
If for some reason you are not able to pay the full amount, then even after talking to the bank and paying a fixed amount, your account will be closed and the bank will give you NOC for the future.
But here your credit score will reduce a bit which you can improve later.
Close unused credit cards and accounts.
Usually we do not use all our credit cards or accounts. There can be many reasons for this like less benefits, not getting more effective discounts, not being able to use it everywhere (low acceptance), getting low credit limit or extra charges from the bank. ) to put etc.
If you also have any similar credit card or account which you do not usually use, then it is better that you close it.
Because all the cards you use are like a loan on you which you have to repay on time.
But your debt gets reduced by closing unused credit cards or accounts.
Due to this, the amount you owe to the bank also reduces and if you want to apply for a loan or card in any other bank in case of future need, you can do so.
We often think that it will automatically close if it is not used, but it does not happen. If you want to close your card or account, then you have to talk to the bank.
Do not apply again and again.
It is often seen that once an application is rejected by a bank, we immediately apply to some other bank. Due to which it is mentioned in our credit report also.
If your application is not accepted by one bank, then before applying again in another bank, check once as to why your application has been rejected.
Due to repeated applications, our report presents a wrong image in the eyes of the bank. It is as if you are deliberately applying again and again, whereas according to the bank, you cannot get the card or loan right now.
Once your application is rejected by any bank, apply again only after at least 6 months. By doing this the chances of your application being accepted increases.
Use secured credit card.
If you are applying for card or loan for the first time but still you are not getting the card or loan.
Or if your application has been rejected by the bank due to your already poor credit score, then you can use the bank’s secured credit card.
Using a secured card helps you a lot in building your credit report or improving your bad score. Because this credit card is based on your own deposit, the bank also gives you the same credit limit here.
Making purchases through this card and making timely payments has a positive impact on your credit report, which proves to be very helpful in effectively increasing your credit score (positive impact for improving credit score).
Credit repair agency.
Generally I do not support it but sometimes it proves to be quite useful. These agencies help you in increasing your credit score by taking some money from you.
But many times, even after paying a lot of money, there is not much difference in their credit score.
If you are using any such agency, then do research about it once and choose a trustworthy one.
Here I have shared all those tips which can help you in increasing your credit score effectively. But if we gather some information before damaging the credit score, then this problem can be prevented before it occurs.
