Good credit history is always important for financial independence. With a good credit score, you are always eligible to bag amazing, affordable opportunities when it comes to lines of credit and loans. Make a new year's resolution in 2022 to build a good credit profile so that you can qualify for affordable borrowing. Without a good credit profile and CIBIL score check online free, loan providers never approve the loan application. If you want to avoid loan rejection, here are some effective ways to protect your credit profile in the new year of 2022.
Pay your bills on time
Payment is an important factor in the
credit report. It takes around 25% of the entire credit report, which impacts
it highly. Anything related to payment will always impact your credit score. If
you are making timely payments, it will help in improving your credit score
easily and quickly. Make sure you pay your bills on time without any delay or
default. Automate your payment or set reminders so that it is easy for you to
make the payment.
Keep your credit account open
A credit account does not mean your
savings or debit account. It actually means all the existing credit cards and
loan accounts that you have. If you have any credit cards or loans with long
transaction history, you need to keep them open. It is perfect to not use them,
but you need to keep them open to add positively to your credit score. Learn
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Do not keep any outstanding or overdue payments
If you are trying to build your credit
score, you cannot keep any outstanding balance pending. Pay the entire bill,
including any overdue amounts. Overdue and outstanding debt straight away leads
to credit score damage. Do not opt for the minimum bill payment option offered
by credit card
companies. It not only damages your credit score but also makes your loan more
expensive.
Do not apply for more than one loan
Stop applying for multiple loans in a
short period of time if you want to improve your credit score in 2022. If you
have faced rejection, it is important to stop applying for multiple loans.
Finishing up
Visit Clix Capital for a free credit score check. If you choose a
free CIBIL score check online free option,
it will be easy for you to track and monitor your score.
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