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Improve Your Credit Report with these 3 steps

I want to have the best Credit Score!

This is what any customer wishes to have. A good credit score is important today than it was 10 years ago. With this three digit code, a Bank/NBFC can determine your credit worthiness. Means they can judge if you will be able to repay your future loans on time on the basis of your past history.

Hence maintaining a positive credit report is very important. Having any negative entry on your credit profile will affect your score in many ways. It can affect your chances to get any loan at lower interest rates. It might also be one of the reasons why your loan application is rejected. In order to avoid this from happening, there are 3 steps which when followed will help you in improving your credit report.

Repay and clear all your past debts – If you happen to have any past debts and have missed the due date, it will be listed on your credit profile. This will be a negative mark on your profile. But there is nothing to worry. Your main concern now will be to get this cleared off from your history. Once you repay all your debt immediately, the Banks will notice that you did indeed repay the whole debt back. Hence you can be trusted in being given a loan.

Always negotiate with the Bank/NBFC – There are times when you might not be able to repay few EMI’s or credit card bills for more than 180 days. In this case the Banks/NBFCs will use the term “Written off” on your credit report. This is not good for your credit profile. Hence instead of this, you must attempt to make full payment towards the debt. In case you cannot do this, you can make partial payment towards the debt after consulting with the Bank. When you pay a higher amount, the Bank will remove off the “written off” term and mention about settlement. This is better than “written off” being mentioned in your report.

Try using Goodwill – In all cases, do attempt to use goodwill deletion. This is when you can ask the creditor to remove few records of late payment entries made on your credit profile. You can give the creditor reasons on why you could not make the payments on time. It is a possibility that the Bank/NBFC will listen to your case and clear those records from your profile. But this is a small chance and we wouldn’t be sure if the Bank will agree to it.

Overall, please remember that the three digits in your credit score will have more importance in your future financial decisions. Hence maintaining it and ensuring that you have a high credit score must be on your top priority. In case you have any queries regarding credit cards or want to apply for a new one, Click Here

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