Monday, 1 June 2015

Uncommon ways to raise credit score

When it comes to your credit score, you are known to the common routine to raise and maintain your good credit score; paying your bills on time, not closing old accounts, keeping the credit utilization ratio low etc. But other than these common rules about your credit score, most people are not known to some other uncommon ways which may increase or decrease your credit score.

Payments before due date:
The banks report your balances to CIBIL or other credit reporting agencies on the statement date, not necessarily on the due date. The balances can be reported before the due date too so you paying the balances on the due date may not make it to your credit report. This may increase your credit utilization ratio thereby affecting your credit score. Try to make all the payments before your due date and by the date of the statement, as that is most necessarily the date till when banks send reports to bureaus. You can also make multiple payments to periodically pay off your balances before the due date.

Collection agencies:
Sometimes our debts go for collections when we are not able to pay them off. Debts going into collections can affect your credit score negatively to a very great extent. You can talk to these collections agencies and many of these agencies will agree to remove the debt from your credit report if you pay it off your debt. But get it in writing before paying off such collection debts.

Deletion by ‘good-will’:
If you are a person who regularly serves his debt and is credit responsible but have 1-2 small things which are hampering your credit score, then  you can get these things sorted by the bank. If it is one of the rare instances when you have made a late payment, talk to your bank ; they might cut you some slack and you can get your credit score improved.