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Top Mistakes to Avoid to Get a Good Credit Score

· Finance,cibil score

Maintaining a good credit score should be one of the foremost priorities of an individual. This is because it is a very important aspect which determines our credit-worthiness and our chances of whether or not we get a loan. It also aids in quick-disbursal of the loan and determines the interest rate which is provided to us by the lenders.

In case you do not know, the credit score is a numerical representation of how responsible you have been with your finances. A CIBIL score ranges from zero to 900, but a good score is the one which is around 750 or above.
Considering its importance, here are some of the top mistakes to avoid in order to ensure that you have a great credit score -
As they always say you should make your payments on time and it is not without reason. Your repayment history is used as a parameter by credit agencies to assign you your credit score. Thus, any missed payments be it of your already existing loans or credit card bills not only leads to heavy penalties but also lowers your credit score.
Credit Utilization
Credit utilization is the amount of your credit limit that you use out of the total limit that is assigned to you. This should ideally be around 30% for every credit card that you own as well as overall of all the cards together. This is because if you use more than thirty percent of your card, then it makes you appear as credit hungry. Thus, if you should get your credit limit updated if you use your credit card a lot and are exceeding the advised credit utilization ratio. You can also check CIBIL score online by visiting Bajaj Finserv.

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