Credit Score: Worried About Low CIBIL Score? Check Simple Steps to Get Back on Track

Credit Score

A good credit score is like a golden key in today’s world. It unlocks the doors to loans you need, whether it’s a dream home, a new car, or even a business venture. But what happens if past mistakes or financial bumps bring your score down below 500? Don’t worry, rebuilding your credit score is definitely achievable. Here’s a guide packed with practical tips to get you back on track:

Smart Credit Card Usage

Keep Your Credit Utilization Low

Credit utilization refers to the amount of credit you’re using compared to your credit limit. Ideally, you should aim to keep this ratio below 20%. For example, if your credit limit is ₹50,000, try not to spend more than ₹10,000 at any given time. This demonstrates responsible credit management and helps improve your score.

Monitor Your Credit Report Regularly

Your credit report is a financial snapshot that lenders use to assess your creditworthiness. It’s crucial to check your report frequently for any errors or inaccuracies. These mistakes can bring down your score, so promptly dispute them with the credit bureau to ensure your report is accurate.

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