A credit score is a numbered rating that credit rating agencies offer you, based on the knowledge they hold on your credit report. Knowing the way to build your credit score is vital if you would like to enhance your possibilities of getting approved for credit.
Credit bureaus produce, keep and update our credit report. They give this data to prospective lenders upon request, to assist them to verify your identity or confirm your creditworthiness.
Sometimes you may be surprised to find that your credit scores are low. This comes as a huge blow, especially when you’re relying on your credit scores to qualify for a loan or credit card. Typically it takes weeks or months to see an improvement.
In this guide, we walk you through the common things that can help you improve or lower your credit score. Understanding these factors will give you a clear picture of your credit score, helping you work on improving it.
1. Always check for any errors in your credit report
2. Always Pay Credit Bills on Time
3. Don’t Be Scared of Credit
4. Do not apply for an Excessive Amount of New Credit
5. Avoid Defaulting on your Credit Card Bills or Loan EMIs