Loan Tips: Just do this work once every month, getting a loan will become easy, know here..

If you use a credit card or have taken a loan from a bank, then you must have heard the name " credit score. It is a kind of report of your financial health. Just as future opportunities become easier if you get good marks in the marksheet, similarly, if you have a good credit score (Cibil Score), banks or financial companies easily give you loans.

All this may sound very common, but there is another side to the story. If you do not repay the loan or credit card installment on time, then your score falls. This directly affects your ability to take a loan. Many times, people think What difference does the score make, but when the need arises, they understand its importance.

Why is a credit score important?

You can consider your credit score as your "financial marksheet". It tells how responsible you are in repaying the money. If the score is good, then the banks themselves will offer you better interest rates and more loans. If the score is bad, the bank can refuse to give a loan or charge a high interest rate.

3 big reasons to check your credit report

1. Correcting mistakes

Sometimes, such entries are seen in the report that are not yours. Like you paid the EMI on time, but "late payment" is shown in the report. If such a mistake is not corrected, your score can be spoiled.

2. Has someone else taken a loan?

Cyber ​​fraud has become common nowadays. Someone may have opened a fake account in your name or taken a loan. The first evidence of this is often seen in your credit report. If you check the report on time, you can catch the fraud and take immediate action.

3. Checking your financial progress
The report clearly shows you what your payment history is like, how much credit card debt you have, and how old your accounts are. All these things together decide what your credit score will be like. By checking it, you can understand whether you are going in the right direction or not.

Easy tips to keep the score strong

Always pay EMI and credit card bills on time.

Do not use the credit limit too much; try to keep it below 30%.

Do not apply for multiple loans at once.

Do not rush to close old accounts; this makes the score look better.

Be sure to check your credit report every 6 months or once a year. You can download a detail report every year for free.

Why is there a problem in getting a loan?

If you have a low score, the bank feels that you are not a reliable customer. In such a situation, they either refuse to give a loan or charge a very high interest rate. On the other hand, if your score is 750 or more, then you can easily negotiate with the bank and get a better deal. If your score is between 650 and 750, then banks can give limited loans with some conditions. On the other hand, if your score is less than 650, then it will be considered bad and the chances of getting a loan are very low.

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