Saturday, 19 August 2017

How Long Must I Have Credit Before I Get a Near-Perfect Credit Score?

Let’s assume you pay all your bills on time, you do not carry any debt on your shoulders and also have a great mix of accounts on your credit report you are proud about it. Yet every time you pull up the cibil report there is one factor which appears to be blocking you to reach the perfect score you always imagined. 
If you have just started out in the world of credit you won’t be having any idea on how to manage accounts, how to maintain a perfect cibil score. But if you are a seasoned person in the credit world you will need to be an ace in regards to credit management.  Many fail to achieve this as there are many credit related things which should be considered,
How to ensure gaining Maximum Points Available considering ‘How Long Have You Had Credit’?
What is your target?
As we know there are different credit bureaus in our country and all of them handle the credit ratings differently, but the basic factors to consider credit ratings is the same, i.e. credit history, mix of accounts, utilization of credit also credit inquires made from time to time. In India priority is only given to Cibil ratings by Indian banks. Consider your target on an early stage and plan it accordingly for example, a credit score of a three year old account will be entirely different than the person who has a credit account from twenty years. You can achieve what a twenty year old credit account has not in three years if you maintain the habit of paying bills on time.
Pay your bills on time
Many have perceptions on having to prepare for the perfect cibil score. What people don’t know is you can avail a loan with score of 750 or above. Yes you saw it right! It’s easy to maintain a score above 750 instead of running for a perfect score and achieve your financial goals.
To build an amazing credit report for a long run, just make your payments on time, keep your expenses low which can lead you to debts. Keep a mix of accounts like consumer loan, credit cards and keep sufficient balances on all. You can definitely track your progress by cibil score calculation from time to time.
Do not close your account and get it removed from your report
If you want to achieve that perfect score do not try to remove any existing account by closing the same. Keep all your accounts live and keep making small transactions through the same, many people think if they close the account the report related with the account vanishes, but that is not the case. The closed account gets reflected on your cibil report for a brief amount of time.   
Opening a new credit account will lower your average credit age
The idea here is to not going for multiple credit accounts when you do not need any. Cut off your luxury expenses and only but what you need. If you are getting another credit this will definitely et reflected in your cibil account and it will lower your credit age.
The Impact to Your Credit Scores
Once you keep a track on the credit scores and make payment from time to time it will lead you to a healthy financial lifestyle.as we know these days as a part of verification there are companies which also pulls up your cibil scores just to analyze you on how responsible are y in terms of managing money. A healthy credit score will always get you of the edge in times of emergency situations by opting for any emergency loan.
It does not matter how long you need the credit before for making a perfect score, it’s about your integrity for paying the bills on time. If you pay the bills on time it will only help you to improve cibil score and lead to a secure future.


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