Your credit history is the summary of all the money you have borrowed and returned on time. Following that, you are allotted a credit score. As such, a credit score of 550 and above is considered fair and makes it easy for you to apply for loans. However, if you have defaulted on payments and your score is closer to 300, getting a loan can be pretty tricky for you. With that being said, here are the six credit tips that will help you during the loan process. 

• Set Reminders On Your Mobile For Regular Payment 

When you apply for loans, remember that repaying your outstanding debt significantly impacts your credit score. Thus, it is crucial to be disciplined when you are paying EMIs. Delayed EMI payments make you pay the penalty and bring down your credit score. So, if you are worried that this might happen to you, set a reminder on your phone right now to make sure you can tackle EMI payments on time. 

• Keep Maintaining The Old Credit Cards  

If you have really old credit cards, you need to maintain them instead of planning to discontinue them. Keep the credit cards with you as long as you can pay your bill entirely and on time. It will help you in building a lengthy and robust credit history. In addition, it will help in increasing and maintaining a good credit score, which makes it easy to apply for loans. 

• Customize The Credit Limit As Required 

Your credit use ratio has a major impact on your credit score. Your credit score gets better when you can restrict the credit used as per the limit allotted. Conversely, reaching the limit can lower the credit score. A way of dealing with this is to contact your lender and customize the credit limit depending on your expenses. 

• Choose A Long Tenure During The Loan Application 

Choose a long tenure for repayment when you apply for loans. It will keep the EMIs low and increase your chances of making the payments on time. In addition, your credit score improves naturally when you don’t skip, delay, or default on EMI payments. 

• Do Not Pile Up On Your Debts At One Go 

Before applying for loans, repay the one you already have to prevent that credit score from plummeting. Taking multiple loans at one go is not a good idea because it shows an insufficiency of funds. In addition, it will make your credit score take a significant hit.  

• Rectify The Mistakes On Your Credit Report  

The CIBIL is not immune to making mistakes when updating your credit records. Placing incorrect information against the report might reduce your credit score. Thus, check the CIBIL report before you apply for loans. It will help you outline the errors and get them corrected by submitting a CIBIL dispute resolution application online. 

Hopefully, you have a fair idea now about how to take care of your credit score. You will find it easier to maintain a good credit history following these tips. 

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