Loan Tips: From a credit card to personal loan, you can get everything in a jiffy; just follow these 6 rules..

Having a good credit score is crucial these days. Whether it's taking out a home loan, a personal loan, or increasing your credit card limit, your score plays a crucial role. Many people think that simply paying bills on time will ensure a good score, but that's not true.

Maintaining your credit score isn't enough. There are other important things to keep in mind. Following these six hacks can easily strengthen your score and enable you to make better financial decisions in the future. A good CIBIL will ensure no bank will deny you a credit card or loan.

1. Never leave a bill unpaid.
Credit card bills and EMIs should be paid on time. Even a day late impacts your score. Many people think that a delay of a day or two doesn't matter, but this is a misconception.

2. Avoid Minimum Due, Make Full Payment
Many times, people try to get away by paying only the minimum due amount. However, if you want a good score, always clear the entire bill. Paying only the minimum amount increases your outstanding balance and gradually damages your score.

3. Don't Settle at a Discount
Sometimes, people settle large bills at a discount. For example, paying a bill of ₹1 lakh by paying ₹70,000. This may seem easy to you, but credit bureaus consider it negative. This lowers your score and can make it difficult to obtain a loan in the future.

4. Don't Use Your Card Limit to the Fullest
Maxing out your credit card limit is also detrimental to your score. Try to keep your credit utilization ratio below 30%. For example, if your card limit is 10 lakh rupees, don't spend more than 3 lakh rupees.

5. Don't Cancel Old Cards
People often close old credit cards they aren't using. This reduces your limit and negatively impacts your score. Keep old cards active, even if you use them only occasionally.

6. Check Your Credit Report Periodically
It's crucial to review your credit report periodically. Sometimes, incorrect entries appear, which can lower your score. Such errors should be corrected immediately to maintain a healthy score.

Conclusion
A good credit score is crucial for your financial future. These six hacks will not only help you improve your score but also make it easier to negotiate loans and card limits. Just remember, improving your score doesn't happen overnight; it requires consistent responsibility and good habits.

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