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| FIXING CREDIT SCORE |
The
need to fix Your Credit Score Yourself arises when your credit score
is very low or bad and it is difficult to get approval for loans.
The first
step that is required to fix your credit score is to procure your credit report
From the three credit bureaus.
The credit highlights the problem areas that need to be worked on which is
Resulting in bad credit score.
If the
report indicates that your credit card debt is very high then start paying off
the debt on the credit card with highest interest rate.followed by making payments(even if minimum amount due)
On your other credit cards. if you are not in a position to pay the total amount
due on other cards,try to make some payment every month so that no late fee
Charges are levied on your card.
In case you
Have a savings a/c and credit card a/c with the same bank , you can go for auto
Debit facility wherein your payment are automatically made from your savings
a/c every month. This way you will be saved from late payment charges every
Month.
The balances
carry forwarded on your credit card should not be more than 10% of your total
Credit limit. As outstanding balances rapidly brings down credit score. Easily
Fix this by paying off the total outstanding amount on your card.
Some credit
cards also offer EMI facility which means that once you have made a purchase on
Your credit card and the amount is big and you can not pay it off in one go
Then you can make payments in installments. You can call the institution and
Discuss the EMI scheme that you would like to go for (i.e. 3 months, 6 months , 9
Months) and the fixed amount (EMI) that you have to pay every month.
But remember
That your credit limit gets blocked for the amount you have taken this
Facility. IF there are other purchases made on your credit card and skip the
Payment then the interest charges are added to your EMI which further increases
Your debt. The EMI scheme is offered by a few institutions so you need to check
Up with them before deciding on making a big purchase.
Don’t pay
Off dues on credit cards that have been written
Off as bad debts by the collection
Agency .By paying on them the credit card gets activated and it adversely affects
Your credit score.
Make
Arrangements for payments with the collection agents and clear your dues one at
A time.
Keep your
Debt to credit ratio under control. Try to maintain a position where there is
Very low liability to you or zero credit. This will help in keeping your credit
Report clean and debt free.
Keep your
Credit inquiries to a minimum. Not more than 2 to 3 per year for any type of loan
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