How can you improve your credit score?

In today’s era, consumers, purchasers, and business ventures are dependent on credit scores for the availability of loans. Improving your credit score is an ongoing effort that involves good financial habits. Here are the steps you can take to boost your credit score:

1. Check Your Credit Report:
   Obtain a copy of your credit report from each of the major credit bureaus (Equifax, Experian, and TransUnion) and review it for any errors or inaccuracies. Dispute any differences you discover.

2. Pay Bills on Time:
   Payment history is a significant factor in your credit score. Ensure that you pay all your bills, including credit cards, loans, and utility bills, on time. To avoid missing due dates, you can set up automatic payments.

3. Reduce Credit Card Balances:
   Tr to maintain your credit card balances low. Credit card balances that exceed your credit limit can negatively impact your cibil score. One need to try to keep your credit usage ratio below 30%.

4. Pay Off Debt:
   Work on paying down existing debts, especially high-interest ones. Reducing your overall debt load can have a positive impact on your credit score.

5. Don’t Close Old Accounts:
   Closing old credit card accounts can affect your credit history length and, consequently, your credit score. Keep older accounts open, even if you don’t use them regularly.

6. Avoid Opening Too Many New Accounts:
   Opening several new credit accounts in a short time can be seen as a risk. Each new account can generate a hard inquiry on your credit report, potentially lowering your score.

7. Settle Outstanding Collections:
   If you have any accounts in collections, work towards settling them. While the impact of collections on your credit score lessens over time, resolving them can still be beneficial.

8. Build Positive Credit History:
   If you have limited credit history, consider responsible ways to build it. This could include using a secured credit card or becoming an authorized user on someone else’s credit card.

Remember, you need to be patient, as boosting a Cibil score requires long-term commitment. To maintain a good credit standing, consistent and responsible financial habits play a crucial role. You should consult a financial advisor to address your query.