Did you score well?

Everybody needs a wingman. Your financial life no less! Let’s help you make some right money moves. Since we’ve been talking Credit Scores in the last two posts, let’s figure out how to score well.

Credit Scores can be a vicious cycle – the lower your credit score, the more interest you need to pay; and the more you need to pay, the harder it is to render monthly payments, which means your creditworthiness falls further. Phew indeed!

Did you know that a CIBILscore of 800 vs. 649 improves your chance of getting a new loan by over 10 times? Take these measures to improve your score:

• Be alert – Stay on top of your bills. Use a personal finance management app like Money View that will monitor and alert about pending payments – mobile, utilities, credit cards, EMIs and more.
• Stay punctual – Ditch the queues, pay your bills online, on-time.
• Length of credit – Retain your old credit cards; use them occasionally and repay on time – this will show that you have been in the credit system for longer.
• Pre-close – Since outstanding debt affects your scores negatively, focus on paying off your loans as soon as possible.
• Avail a loan only when you need it the most. Many loan enquiries will result in many CIBIL enquiries and therefore a lower credit score
• Track – Check your credit score periodically to rectify any discrepancies

Follow these useful tips and help maintain a healthy credit score.