What is a credit score?
A credit score is a three-digit number that measures an individual’s creditworthiness, usually ranging between 300 and 900.
In general, a credit score of 700 and above is considered to be good.
Pay your bills on time
Your payment history is one of the most significant factors in your credit score. Consistently paying bills on time helps maintain a healthy credit history.
Maintain a low credit utilisation ratio
The credit utilisation ratio (CUR) is the ratio of your current credit card balance to your credit limits. Ideally, the CUR should be below 30% of the total available credit limit.
Limit credit usage
Avoid applying for multiple credit cards and opting for too many personal or car loans as it leads to a negative impact on your credit score.
Regularly check your credit report
Errors can happen! Review your credit report regularly to ensure that there are no errors, and if there are inaccuracies, get them rectified immediately.
Maintain a healthy credit mix
Having a mix of credit accounts, such as credit cards and loans can positively impact your credit score. It demonstrates that you can manage different types of credit responsibly.