How to keep your credit score above 700? Top 6 things to do
To maintain a high credit score, above 700, you should pay your credit card bills and loan repayments on time. Additionally, your credit utilization ratio should be kept below the optimum level of 30 percent.
Maintaining a credit score above 700 (measured by CRIF High Mark, Experian,, or Equifax) requires credit discipline. This means paying credit card bills and loan repayments on time.
Additionally, one should keep the credit utilization ratio (CUR) under the optimum level of 30 percent. Aside from this, one should make sure that a healthy credit mix is maintained. It is also advisable to regularly check your credit score and dispute the mistakes (if any) to get them rectified.
Some of the key things one should do
I. Keep credit utilization ratio at the optimum level: To keep a credit score high, one should keep the credit card limit at the right level. For instance, if your credit limit is ₹1,00,000, you should refrain from spending over ₹30,000 (30 percent) at any time.
High utilization reflects financial stress and pulls your score down. If needed, you can request a credit limit increase to reduce utilization while keeping spending stable.
II. Pay credit card and loan EMIs on time: It is vital to make timely payments of credit card bills, personal loans, home loans, car loans, and BNPL (Buy Now, Pay Later) accounts. A single missed EMI can affect your credit score significantly. It is recommended to set up auto-debit for EMI payments to avoid missing due dates.
III. A healthy credit mix: A balanced mix of secured loans (home/car loans) and unsecured loans (credit card, personal loans also helps improve your credit score. Only relying on unsecured credit can negatively impact your credit profile.
IV. Avoid excessive loan applications and hard inquiries: Each time you apply for a new loan or credit card, the bank carries out a hard inquiry, which also negatively impacts your score, albeit temporarily.
Too many loan applications in a short period (particularly personal loans) signal high credit dependence. Space out credit applications and avoid frequent rejections.
V. Check your credit report regularly: It is recommended to get a free credit report annually from a credit rating agency such as CRIF High Mark or other bureaus such as Experian. One should watch for fraudulent accounts or incorrect late payments and dispute errors instantly.
VI. Try to avoid closing old credit cards: The longer your credit history, the better the score. This means even older credit cards contribute to your credit age.
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