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Build Your Credit Score: Tips From Anushka Rathod

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Build Your Credit Score: Tips From Anushka Rathod

In today’s India, a good credit score is like a golden passport. It unlocks access to loans, credit cards, and other financial products with better terms and lower interest rates. But for many, especially young adults or those new to the credit world, building a strong credit score can seem like a mystery. Moreover, Financial influencer Anushka Rathod has some tips to help you out! Did you know she was included in the Forbes India 30 under 30 List this year?

Here’s our breakdown of key strategies to help you improve your credit score in India:

1. Become Creditworthy:

The first step is establishing yourself as a creditworthy borrower. Besides, This means obtaining a credit product like a secured credit card or a small loan. Secured options require a deposit that acts as collateral, minimizing risk for lenders. Furthermore, Timely payments on these build a positive credit history.

2. Pay Bills on Time, Every Time:

This is the golden rule of credit score improvement. Missed or late payments are the biggest culprits for a bad score. Besides, Set up automatic payments or reminders to ensure you never miss a due date.

3. Keep Your Credit Utilization Low:

Credit utilization refers to the amount of credit you’re using compared to your total credit limit. Ideally, aim to keep this ratio below 30%. However, Maxing out your credit cards sends a negative signal to lenders, suggesting you’re overextended.

4. Monitor Your Credit Report Regularly:

You’re entitled to a free credit report from credit bureaus like CIBIL or CRIF every year. Moreover, Regularly check for errors or discrepancies that could be lowering your score. Dispute any inaccuracies promptly to maintain a clean report.

5. Maintain a Healthy Credit Mix:

Having a mix of credit products, like a secured credit card and a small personal loan, shows responsible credit management. However, avoid applying for too many credit products in a short span, as this can be seen as credit hungry behavior.

6. Be Wary of Co-signing:

Co-signing a loan for a friend or family member can be risky. If they default on payments, it will negatively affect your credit score as well. Furthermore, Only co-sign for someone you trust completely and understand the potential consequences.

7. Be Patient, Building Credit Takes Time:

Improving your credit score is a marathon, not a sprint. Consistent responsible credit behavior over time will gradually lead to a higher score. Moreover, Don’t get discourage by slow progress; stay focused on your long-term financial goals.

Additional Tips:

  • Become an Authorized User: Consider becoming an authorized user on a family member’s credit card with a good payment history. However, Their positive credit behavior can reflect on your report.
  • Limit Hard Inquiries: Each time you apply for a loan or credit card, a “hard inquiry” is placed on your credit report. Besides, Too many hard inquiries within a short period can lower your score. Moreover, Plan your applications strategically.
  • Maintain a Long Credit History: The longer your credit history, the better. Moreover, Avoid closing old accounts unless they have high annual fees or are inactive.

By following these tips and practicing responsible credit management, you can build a strong credit score that unlocks a world of financial opportunities. Remember, a good credit score is an investment in your financial future, so start building yours today!

Anusuya, a Bengali girl in Bengaluru, is an experienced content specialist with a passion for writing compelling articles & blogs while crafting engaging social media posts & website copy. Currently a content manager, she thrives on being hands-on in the creative process. When not meeting deadlines, she enjoys Pinterest-planning her next trips; to explore new cities and immerse herself in local cultures, especially local food. Is it any wonder she chose a degree in Travel & Tourism?

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Financial Management for Indian Creators: Mastering the Art of Budgeting, Saving, and Investing

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Financial Management for Indian Creators: Mastering the Art of Budgeting, Saving, and Investing

In the vibrant world of content creation, where creativity meets entrepreneurship, Indian creators are making their mark across various platforms. From YouTube to Instagram, X to podcasting, the opportunities seem endless. However, with great influence comes great financial responsibility. Let’s dive into the essential financial management tips that every Indian creator should know to build […]

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Finance

5 Finance Influencers Explaining How to Invest Your First Rs 1000

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5 Finance Influencers Explaining How to Invest Your First Rs 1000

Finance, investment, and stability are interconnected concepts that complement each other. Investing transcends mere profit; it encompasses the safeguarding of your financial future, the realization of your aspirations, and the creation of opportunities for both yourself and those around you. Many finance influencers have emphasized the significance of starting investments early to attain financial independence […]

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Finance

5 Indian Influencers Who Make Budgeting Fun for Teens

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5 Indian Influencers Who Make Budgeting Fun for Teens

Creating and sticking to a budget is foundational for sound financial management. You can use it to keep tabs on your money coming in and going out, save for future objectives, and be ready for unforeseen bills. Teen budgeting is a wonderful means for instilling fiscal responsibility and laying the groundwork for future financial literacy. […]

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