How To Get A Perfect Credit Score?

by Ajay Singh Financial Advisor

Debt is always helpful when it comes to any crisis or emergency. Financial support and credit health are some of the eligibility criteria that every borrower needs to meet. The main focus of a loan provider lies in understanding the risk assessment of offering a particular loan. A credit score is the most important eligibility that is meant to be fulfilled. The range of credit scores stands between 350-900 depending upon financial activities and behavior. A perfect credit score makes it possible for you to get a low rate of interest and an easy loan approval. If you want to explore the various lines of credit or bag a good rate of interest, you need to maintain a credit score. Here are some of the ways that help you to have a smooth and hassle-free experience with your credit report.

What is meant by a perfect credit score?

A credit score is a three-digit number that indicates the creditworthiness and credit health of an individual. It is the most important aspect that a loan provider looks at while deciding the faith of a loan application. A credit score takes into consideration all credit activities and behavior. A good credit score means a borrower is eligible and can handle a loan well. Individuals with a good track record will have a score above 750 and such a score has little to no problems at all. The perfect score to have is 800 or more, while 750 is always a good one for borrowing. Find out the ways in which you can maintain a score above 750 and more.

Ways to have a perfect credit score

●  Make timely payments: Payments are very important when it comes to building a credit score. You can easily get a good score when you make timely payments. A good track record of payments will give you a good credit score. This will help you with smooth and hassle-free borrowing and a low rate of interest.

●      Do not close credit accounts: New credit accounts do not add points to your credit score. When you close your existing credit account to open a new account, you damage your score. Let the existing credit accounts stay open. The longer the credit age, the better the credit score will be. If you have accounts that you don’t use, let them be there as closing accounts will drop your credit points. Learn How to calculate business loan by using business loan calculator.

●   Do not apply for multiple credit accounts. When you keep applying for multiple credit accounts, you end up hurting your score. Every time a hard enquiry runs over your credit report, it will drop your credit score. This will not give you a good score, rather damage it.

●      Don’t keep it overdue: A credit card bill has two parts: a minimum bill and the full bill amount. You need to pay the full bill amount without keeping any overdue or outstanding amount. When you keep outstanding, you hurt your credit score as well as make your loan expensive. A credit card is the most expensive form of loan out of all the options.

●     Do not use too many credit accounts: If you have too many debts ongoing at the same time, your credit score will not be a high one. There will be risk and you may default on one EMI out of multiple payments.

Wrapping up

Make it a habit to check your credit score once in a while on the Clix Capital website. You will get a free and accurate credit report where you can detect and report any errors if found. A good credit score is the key to easy and affordable borrowing.

Read Here : There are 6 vital steps that help you to increase your home loan eligibility

 

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Created on Aug 10th 2021 08:29. Viewed 119 times.

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