There are a lot of things in life which you want to do. There are many of us who try to find the easiest or let’s put it this way find the laziest way to do things.
There are a lot of people who spend a lot of their energy in maintaining a good credit health and find ways sitting online finding solutions on how they can improve their score. Most of us know why we should maintain a good credit score and how that can help us the long run.
But is there a laziest way to improve your credit score? Well we have good news for you today, yes! There is a lazy way to build your credit score positively.
Usually a credit score is a number which ranges from 300 to 900. If your score is anywhere ranging between 750 and 900, it is considered to be a great cibil score. This score range can help you get any type of loan in no time. With such score you can opt for maximum amount of loan sanction and also can negotiate further with the lender on interest rates and processing charges.
A good credit report will add good value to your financial lifestyle if adhered properly. An individual with good credit report enjoys a lot of privileges offered by financial institutions and lenders which helps the individual in long run.
Here are easy ways to improve your credit score,
- Older the account, better
The age of your credit roughly contributes 15% of your overall cibil score. The credit bureaus always give priority to applicants who have longer credit reports. Would you lend money to an individual who just started or someone who has a credit history of 10 years?
A bonus tip would be to never close a credit card account if you have one. Just try making small transactions every month and make the payment on time, this will help you to improve the score and also will make the account old. This will help you get your cibil score up.
- Let the bank make your payments
There are a lot of promotions going on in today’s market which endorses auto payments. If you have different loans on your account, you will have to make all your payments on time. What better way to opt for auto payments. In such scenarios the bank will take care of your payments, you just have to maintain sufficient balance. This service is absolutely free of cost and you do not have to worry about EMI dates, the banks will take care of it.
Making payments on time contributes a whopping 35% of you credit score.
- Stop credit hunting
Do not fall for the tele calling companies who call you explain great offers on loans and credit cards. We always fall for such gimmicks and end up making a hard inquiry on our credit report which then hampers the cibil score. These hard inquiries made by different lenders remains on your report for two years and when in future you genuinely apply for a loan, these may cause you problems. Credit inquiries accounts for 10% of your cibil score.
You can get your credit score a boost without even making inquiry. Only inquire when in need, do not fall for mouthwatering offers by lenders.
This is the easiest way of all. You can improve your cibil score by becoming an authorized user on someone else’s credit account, this is called piggy backing. If a family member like father, spouse has a good credit history, you can tag along with them becoming an authorized user for their account and this will boost your credit score. This is like an ultimate trick used by people to get their credit score up in no time without any efforts.
Just make sure the lead account holder makes all their payments on time and maintains a good credit health, or else this practice can also turn out to be dangerous as the lead with hampering their own can hamper your cibil score as well.
If managed correctly a credit score can do a lot of financial miracles in your life. Mantling a good cibil score is no rocket science, all it needs is good financial integrity which will help you in long financial runs.