Your Go-to Guide To Managing A Good Credit Score!

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The creditworthiness of a person is inferred by a credit score. It is a number anywhere between 300-850 with 300-629 (bad), 630-689 (fair), 690-719 (good), 720-850 (Excellent).

The higher your creditworthiness, the lower the risk for the financial institution lending you money and vice versa. That’s why it is very vital to maintain a good credit score for the ease of taking credit as and when the need arises.

Here’s your go-to guide to upholding a good credit score:

  1. Pay your bills timely: Well, yes. Stating the obvious, if you will pay your bills as soon as they become due or even before the due date, you will make it to their good books. So, for achieving or maintaining a good credit score keep on paying your bills on time.

  2. Pay your instalments on time: So, why do you take credit cards? For the benefits, right? So needless to say one of the most important factors is that it can help you buy maybe your dream car, your dream house, etc. Now when you buy them in instalments using your credit card, it becomes very important to pay the instalments on time for a fair-good-excellent credit score.

  3. Educate yourself on Credit Score Risk Factors: Credit Score risk factors are the certain reasons why you are not given a credit by any particular financial institution. These factors can be credit length, payment history, the amount owed, etc. Knowing about them will prevent you from doing anything that harms your credit scores.

  4. Think before taking multiple credits at a time: I know how fascinating it can be to buy things when it comes easy and with certain advantages because you have a good credit score and you can take multiple credits. But wait…does that mean you should? Probably not. Taking Multiple credits always comes with certain downfalls. Maybe in future, you will have difficulty paying off the debt that will harm your credit score. So, It's better to take one credit at a time or think twice before you apply for a credit card even after having one.

  5. Don't exceed your credit limit: There are several pitfalls of exceeding your credit limit, it not only degrades your credit score but also results in an over-limit fee, the declining of your credit card, or your credit limit may go down even further. To avoid all such mishaps it is quite intelligent to not surpass your credit limit.

Bottom Line

Maintaining a good credit score is not a destination but rather a journey with careful and simple steps to be followed. A wise man takes care of his cash as well as his credit. Be wise and maintain a good credit score for a seamless future experience.

Additional Reading - What is the CIBIL Credit Score and Why Should It Matter?


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