Master your credit score and unlock big savings on loans. A good credit score means better interest rates, saving you lakhs of rupees!
Written by - Prathyush Gupta Designed by- Prince Kumar
Photo Credit: Pexels
What's a credit score? Your credit score shows how likely you are to repay loans on time. The higher your score (from 0 to 900), the better your chances of getting cheaper loans! Photo Credit: Pexels
What affects your credit score? Payment history (30%): Pay bills on time. Credit usage (25%): Don't max out your credit cards Photo Credit: Pexels
Credit mix (25%): Try a mix of secured loans and unsecured loans. Other factors (20%): Don't apply for too many loans Photo Credit: Pexels
Boost your score: Pay on time! Even a small delay (30 days late) can seriously drop your score. Set up reminders or automatic payments to avoid missed payments. Photo Credit: Pexels
Keep your credit card use low! Don't spend more than 30% of your credit limit. The lower your balance compared to your limit, the better for your score. Photo Credit: Pexels
Build a long credit history! The longer you have credit cards or loans (and pay them on time), the better your score. Try not to close old accounts. Photo Credit: Pexels
Show you can handle different loans! Having a mix of secured loans (like a car loan) and unsecured loans (like a credit card) shows responsible credit behavior. Photo Credit: Pexels
Don't apply for too many loans! Applying for too many loans in a short time can lower your score. Only apply for credit when you really need it. Photo Credit: Pexels
Check your credit score You can check your credit score. Keep an eye on it to make sure it's accurate and improve it over time! But don't over do it. Photo Credit: Pexels
You can check your credit score. Keep an eye on it to make sure it's accurate and improve it over time! But don't over do it.