Your credit score showcases your financial fitness. The credit score impacts your financial transactions, including the credit limit and loans. You need to have a good credit score to get approval for your loan. To have long-term financial well-being, you need to have a good credit score of 750 or above. If you already have a good credit score, then you can follow 6 habits to maintain your score:
● Monitor the credit utilization ratio:
In order to maintain your credit score, you need to monitor the credit utilization ratio. It is the calculation of credit usage done against your credit limit. You need to ensure that the ratio is always 30% to keep the credit score stable. You can limit your monthly expenses to maintain a good ratio.
● Check the eligibility criteria for every loan that you borrow:
There are various loans that are offered by financial institutes in order to give necessary funds to customers. But this doesn’t mean that you apply for any type of loan. You need to make sure that you pass the eligibility criteria for the loan that you want. If you do not take care of the eligibility needs, it reduces your chances of getting the loan and lowers your credit score.
● Do not cancel old credit cards:
With time, you might think of canceling old credit cards but do not do that if you want to maintain a good credit score. Make sure to successfully pay your credit card bills instead of canceling them. The older credit cards will show a great credit history if you regularly make the repayments.
● Take one loan at a time:
If you want to maintain your credit score, then make sure to take one loan at a time. If you borrow multiple loans simultaneously, it will put a greedy image in front of the lenders, and it might also result in lower credit scores. Make sure to take only one loan at a time and repay the EMIs timely so that your credit score stays good.
Sometimes your CIBIL report can have errors, so in order to avoid those, you must check your CIBIL report regularly. You can correct the mistakes and also keep an eye on your score. It will help you improve your credit score and also correct any errors at the earliest.
● Pay the EMI on time:
One of the most important things to keep in mind to maintain your credit score is paying the installments on time. If you want a good score, pay your monthly EMIs without any delays. You can keep track of your due dates and pay the charges in order to avoid late charges and high-interest rates on your account.
Conclusion:
You can maintain good creditworthiness by following these steps. You must keep track of your payments and credit bills to maintain your credit score. A good credit score helps in getting loans faster and also maintains your credit history
