5 Mistakes to Avoid to keep your Credit Score Sound
CIBIL score is extremely important to get your loan application approved. Here are some mistakes to avoid to keep your credit score sound.
- Delay in Credit Card Payments: Never skip or delay credit card payments. If you pay out for credit card bills in time, it will help uplift your creditworthiness. If you do the vice-versa, it will spell a negative impact on your credit score. You can set auto-debit system to pay for your credit card bill every month. Even missing a single payment can affect your CIBIL score.
- Multiple Loan Enquiries at Same Time: If you are prone to making too many enquiries for loans from lenders simultaneously, it will badly affect your credit score. Too many hard enquiries into credit report can mean you are very desperate to obtain credit. Rather compare loan products online at loanbaba and then apply with desired institute or bank to avoid making multiple loan enquiries.
- Owning Many Credit Cards: Multiple credit cards may appear status symbol to some and a source for funds. But, owning too may credit cards can affect your credit score if you miss balance transfers, payments etc. Keeping a track of credit cards (if plenty in number); can cause a strain to your income.
- Acquiring Multiple Unsecured Loans: Availing too many loans without collateral or security can dent your credit score against loan that is secured. Maintain a mix of secured and unsecured loans to better your credit score. Secured loans have a positive effect on credit score as these become fund assets.
- Insufficient Cash in Loan Account: Non-payment of loan instalments can cause damage to credit score. Thus maintain enough balance in loan account to regularly repay loans within given timeframe, and stabilize your CIBIL score.