Don’t let bad credit history repeat itself
Harsh Roongta: Nov 19 2012, 03:10 IST
to eliminate people whom they will not consider for lending. So if you have a credit score of 825 and your friend has 775, you will still get the same rate and experience from the lender since both of you will make the grade to be considered for the loan. Here are a few things that you could do to make sure that your score becomes higher while waiting for the benefits to accrue:
Get a copy of your own credit report at least once a year and make sure you follow up to get any errors corrected to ensure it does not hurt your credit score.
Pay your bills on time
Keep unsecured loans to a minimum. Don’t close your old credit cards as repayment history on older credits has a higher weightage than on a newer facility. If you have used the credit limit on your card almost fully then apply to get your credit limits enhanced to show lower utilisation of your credit limits.
You will hopefully realise that there is a vital function the credit bureau performs and not just that of a ‘Boogeyman’. l
— Author is CEO, ApnaPaisa.com
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