Ways to Boost Your Credit Score for Personal Loan Application
18 January, 2025
Synopsis
- You can boost your credit score by making sure you always repay your debt on time.
- Keep your older Credit Cards active to build a good credit history.
- Avoid multiple loan applications to avoid hard enquiries on your credit report.
Thinking about taking a loan in the future? Then you need to ensure your credit score is high. However, how do you increase your credit score? You can maintain a good credit score (more than 750) by following the below tips.
How to Increase Credit Score
You may improve your credit score by following these steps:
Set Reminders for Credit Card Payments
When looking for ways on how to improve credit score, you should keep in mind that Credit Card payments matter a lot. Set reminders for when you receive your bill so that you can pay them off timely.
Avoid Defaulting on Loan Repayments
If you fail to repay a loan on time, the lender sends this information to credit information companies that generate your credit score. Therefore, it is imperative that you pay your loan EMIs on time.
Keep Your Older Credit Cards
To do this, you should keep your older Credit Cards active. So you need to keep using them and paying their bills on time. This will build a longer credit history in your final credit report.
Increase Your Credit Limit
You may also contact your Credit Card provider and request an increased credit limit. If you end up using all your credit limit each month, this can ensure that you do not max out all the time. Keeping your spending 30% below your limit is key to understanding how to increase your credit score.
Avoid Taking Multiple Loans at Once
When you apply for a Loan, the lender makes a hard enquiry on your credit report. Multiple loans mean multiple hard enquiries, consequently impacting your credit score.
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Frequently Asked Questions
How can I increase my credit score fast?
The way you can increase your credit score faster is by always pay your Credit Card bills and loan EMIs on time.
How can I get a credit score of 800?
You ought to maintain a diverse credit history and keep your credit utilisation below 30% of the credit limit.
Is a credit score of 900 possible?
Yes, but you need to maintain an excellent credit history to achieve it.
Is 700 to 750 a good credit score?
Generally, a credit score of 700-750 is considered good for most loans.
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*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
