A credit score indicates the creditworthiness of an individual. It means the degree to which a person is deemed creditworthy, usually based on their previous ability to repay debts. The score ranges between 300-900, anything above 600 is considered a decent credit score. Having a good Credit Score is very important to get easy credit. And that is why one should immediately focus on the measures to increase your credit score in case of poor credit. These measures can be identified by knowing about the do’s and don’ts to improve credit score:
What to do to increase your Credit Score? – The Do’s
✔ DO always make credit card bill payments on time.
✔ DO make your Credit Card bill payment in full, without leaving any balance.
✔ DO replace your cash payments with Credit Card payments to build credit history.
✔ DO Catch up on past due amounts.
✔ DO check your Credit Report regularly to spot any errors as soon as possible so that they can be quickly rectified.
✔ DO always maintain a balance of secured and unsecured Credit
✔ DO pay your EMIs on time.
✔ DO complete research before applying for Credit Cards so that you don’t do anything that might affect your Credit Score.
✔ DO know the measures to improve your credit scores by heart.
✔ DO exercise building good credit from the very start.
What practices to avoid? – The Don’ts
❌ DON’T open many credit accounts in a short period, it will affect your credit score.
❌ DON’T procrastinate on your credit card bill payment.
❌ DON’T spend over your budget.
❌ DON’T withdraw cash from your Credit card
❌ DON’T let the dues and interest accumulate
❌ DON’T max up your credit cards or exceeds your credit limit.
❌ DON’T apply for more credit cards if you already have a balance on the rest of your credit cards.
❌ DON’T ignore any errors in your credit report.
❌ DON’T close old accounts.
For a better Credit Score, it is very important to do what is recommended to improve the score and strictly avoid that can bring harm to your credit score because it may take only one activity to bring down the score by a significant amount but it can take a considerable amount and effort to bring that up again.