While India crossed 15,00,000+ cases within 4 months of lockdown, many people’s livelihood has been affected. Moreover, RBI provided moratorium for 6 months to people who wish to get some extra time to earn, save and repay the loan EMI.
But what about people who did not apply for moratorium and did not pay their bills? Do you know what happens to such people?
- ■ Their loan EMIs / credit card bills will default due to non-payment.
- ■ This will affect their credit score.
- ■ Banks will apply late payment charges and other penalties on their bills.
- ■ Getting a loan in the future will become difficult due to this.
If you are going through this phase, do read below as we have the best solution for you.
Best Solution to improve credit score:
Here’s a tried and tested solution that will help you improve your credit score.
- ■ Firstly, you must accept that it will take some time to improve this error. Credit score falls quickly but takes time to rebuild.
- ■ You can start by generating your credit report. This report has a list of all your transactions and errors. Check if any error has been listed wrongly. Find all such errors and get them rectified. Each error you close, will improve your credit score.
- ■ Then, you will start by repaying all your missed debts. Start one at a time or if you can afford it, pay all of them. If you have multiple debts, take 1 personal loan and close all of these smaller debts. This will help you save a lot of interest money.
- ■ Ensure that there is no scenario of a bounced cheque and that you don’t default in the future on any loan EMI or credit card bills as this will affect your credit score improvement.
- ■ Banks like to see a customer that pays his/her bills on time and is responsible. If you keep handling your financial matters responsibly, Banks appreciate it. Pay your bills on time, and in some time, your credit score will start increasing.
- ■ Higher credit score is a sign of a responsible citizen. Banks will offer you the lowest interest rates and the best of benefits on loan products and credit cards. You will save a lot of money.
These are some steps that one can follow to improve their financial life. If you know someone who needs this solution, do share it with them as soon as possible so they can solve all their future financial problems.