When you decide to take a personal loan for any kind of financial crisis or emergency, it is important that you improve your credit score to get the best benefits from a personal loan. A personal loan is one of the best ways to meet all kinds of needs and expenses. A personal loan’s credit score is one of the important factors in getting instant approval along with the best rate of interest. Loan providers always impose a high credit score requirement on salaried and self-employed individuals to get an unsecured personal loan. Without a good ‘my credit score’, you may not get loan approval, and even if you do, the rate of interest will be very high. Therefore, let us take a look at three important tips that help in improving Experian credit scores and find out all the benefits of having a good credit score.
Tips to improve your Experian credit score
Make your payments timely for Experian credit scores
It is very important that you improve your credit score by automating your payments on time so that you maintain a clean track record. It is very important for you to make your payments on time within the due date, whether you are paying your credit card bills or the loan monthly instalment amount. When you do not pay your payment on time, it will end up being more expensive and you will damage your credit score as well.
Payment takes around 25% of the entire credit score calculation, which is a huge percentage. Therefore, any delay or missed payment will actually damage your credit score. The negative impact is huge, and it is important for you to make sure that you make your payments on time. When you do not make the payments on time, you will end up with an expensive credit card bill with late charges and your credit score will become low.
Keep your credit accounts open
Your credit score always improves with active credit accounts in your credit profile. Credit accounts mean credit card accounts and existing loans that you have taken from financial institutions. It is very important for you to understand that keeping your credit account open will actually impact it positively. If you have a credit card with a long credit history and a clean track record, you need to keep it open so that your credit score improves with time. It does not mean that you have to use a credit card. You can simply keep it active without using it. The longer the credit age and transaction history, the better it is for improving your credit score with time. Make sure you are able to keep your credit accounts open so that, without any other activity, your credit score improves with time. Learn how to get a business loan.
Make a full payment on your bill
It is not a recommended practise to keep any outstanding or pending balance on your existing bills. Whether you are paying your credit card bills or loan repayments, it is always important that you make your full bill payment. Do not include any past-due or pending amounts in your current bill amount. Credit cards do come with the option of the minimum balance payment, but one should not avail of it in order to improve your credit score. When you keep the outstanding amount and keep forwarding the outstanding amount with your credit card statement for the next billing period, it will damage your credit score and make it much more expensive. Always limit your spending habits so that you get the best bill amount that is easy for you to pay.
The importance of a good Experian credit score
- With the help of a good credit score, you can get a low rate of interest. If you have a credit score above 750, you will eventually get a low rate of interest, which is very affordable. An affordable rate of interest makes it very easy for you to get a personal loan at the best rate of interest. This way, the monthly instalment amount for your personal loan will be affordable and it will be very easy for you to repay the loan within the tenure.
- When you have a good credit score, you can get instant approval on any personal loan that you want. This means that having a good credit score always helps in getting the right borrowing experience. When you have a good personal credit score, it is very easy to get instant approval.
- With a good credit score, it is always easy to get a high-value loan. When you take a personal loan with the help of a good credit score, the sanctioned amount will always be very high.
Visit Clix Capital for a smooth personal loan application process. Make sure you meet the eligibility criteria and have a good ‘my credit score’, to get instant personal loan approval at the best rate of interest.