How to improve your credit score?
September 17, 2024Updated:September 17, 20243 Mins Read
If your credit score gets bad then you won't get any loan from any bank in future. For this reason, one should always keep an eye on maintaining a good credit score. There are ways to improve a bad credit score.
Credit score
Sometimes a situation arises, when a sudden financial need arises and we take a loan. Many a times it happens that after paying few installments we are unable to repay the installments and the EMIs start defaulting.
If so, the biggest problem is the credit score. It's a great thing and it's important in today's time. If your credit score gets bad then you won't get any loan from any bank in future. For this reason, one should always keep an eye on keeping the credit score right. Today we will tell you some things to improve your bad credit score.
Gold loans can be a great way to improve credit score. Gold loan is a secured loan. In this
you can mortgage your gold and borrow an amount according to its value. Now the question is what effect does gold loan have on credit score? The answer to this question is yes. The credit score improves very quickly if the gold loan installments are paid on time. There, previously defaulted credit scores also improve very quickly.
If you never apply for a new loan or credit card, it affects your credit score. In fact, when a bank gives a loan, the credit bureau first asks for your credit history information. This is called hard inquiry. Meanwhile, if your verification report shows more inquiries and in a shorter period of time, it is a clear signal that you have a very high loan requirement, or that you are borrowing more than you need, neither of which is a good sign and affects your credit score. read
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If you keep repaying the money as per the stipulated terms after getting the gold loan, your credit score
will increase very quickly. If it has been bad before, then that too
has a chance to get better with smooth repayment of this gold loan. Some companies even offer interest waivers if early repayment is possible. If a gold loan
defaults, it can quickly worsen your credit score. You may also have to pay a late-fee.
