How to Improve Your Credit Score in 2022

Check for Errors

If the borrower notices any error in the report, he can immediately take it up with CIBIL and the lender. Discuss with the officials and ensure to get the errors solved at the earliest.

Credit Utilization Ratio

Keep a watch on the credit card used; use the card only for essential dealings. This way one can maintain the credit utilization ratio of less than 30%.

Fresh Credit Applications

If in the recent past, the loan or a credit card application has been rejected, then avoid applying for a fresh loan or other credit immediately.

Keep away From Frequent Applications

Lenders normally check the credit report each time a person applies for a fresh loan; all such applications are recorded in the report.

Repayments on Time

To improve the credit score give preference to repaying the loan amount. If for some reason timely repayment is not possible, then the borrower should approach the lender for readjusting the repayment of the loan amount.

Closure of Credit Accounts

A defaulting borrower normally approaches the bank to close the debt by lowering the full amount due. This act has to be avoided as it reflects in the credit report and hurts the credit score.

Click Read More To View More Ways To Improve Credit Score in 2022

Arrow