Have poor credit score? Here are 7 simple steps to improve it
In case your credit score is poor, there are a number of steps that you may take to start improving your creditworthiness. These include reducing your credit card debt, addressing delinquent accounts, refraining to open new accounts, applying for a secured credit card, among others.
Credit report: Get a copy of your credit report from CIBIL. Review the same thoroughly in order to identify any errors or inaccuracies which could be negatively impacting your credit score.
Address delinquent accounts: If you have any accounts that are past due, bring them current as soon as possible. Contact your creditors to discuss repayment options or negotiate settlements if necessary.
Dispute errors: If you find any errors on your credit report, file disputes with the credit bureaus to have them corrected. This may involve providing documentation to support your claim. Correcting errors can potentially boost your credit score.
Reduce credit card balances: High credit card balances relative to your credit limits can harm your credit score. Focus on paying down your credit card debt to lower your credit utilisation ratio. Aim to keep your credit utilisation below 30% of your available credit.
Avoid opening new accounts: While it may be tempting to apply for new credit, avoid doing so if you have a bad credit score. When you open new accounts, it can result in hard inquiries on your credit report that can lower your score temporarily.
Secured credit card: If you fail to qualify for a traditional credit card, you can explore the option of applying for a secured credit card. These cards require a security deposit, which reduces the risk for the issuer and makes them more accessible to individuals with bad credit.
Have patience: Improving
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