With time , the importance of credit scores is also increasing. Your credit score tells how your loan payment history is. With the help of credit scores, banks find out how much risk is there in giving loans to a customer. If your credit score is very bad then the bank can directly refuse to give you a loan and if your CIBIL is bad then you will be given a loan at a higher interest rate than the normal interest rates. Here we will learn how to improve a bad credit score.

Loan repayment history

Your loan repayment history is the most important and biggest factor affecting your credit score. If your loan repayment history is not good, then first of all improve it. Pay your credit card bills and loan EMIs on time. Do not take too many loans at once.

Check your credit score regularly.

It is usually seen that people do not check their credit scores regularly. But you should always keep checking your credit score or credit score regularly. By doing this, if any mistake is found in the credit report, it can be corrected, which also improves your credit score.

Stay away from debt settlement.

If you have taken a loan, try to pay all the EMIs on time. Debt settlement should be kept as the last option. If you settle the debt, the credit bureau considers that you are not able to repay the loan, which spoils your credit score.

Credit Utilization Ratio

Credit Utilization Ratio (CUR) is an important factor affecting the credit score. Try to keep your CUR low. If you use your credit card a lot, then contact the bank and increase the limit of your card. By increasing the limit, you will be able to use your card more and your CUR will also remain under control. This will always keep your credit score good.