Checking and maintaining your financial health is as important as your physical health today. A healthy credit score (generally in the range of 690 and above) not only gives you access to future loans and credit, but also shows your credit worthiness and general discipline to prospective employers, many of whom now check credit scores of candidates.

Just like you need to take some steps to correct your physical health parameters, a low credit health also can be corrected over time, with some a few easy steps and a lot of care and attention. A heads-up though, your credit score will not shoot up overnight; it takes time and patience and financial discipline.

Rectify errors

First of all, check your credit score and review it. You can check your score either directly on the CIBIL website or can approach your bank or financial institution to help you with it.  If you see any discrepancies with your credit behavior, you can approach your bank, financial institution or CIBIL directly, to raise a concern. They are bound to initiate and address your dispute within 30 days.

First time borrowers

Gone are the days when not having taken a loan reflected well on you. Today, if you don’t have never taken credit or owned a credit card, a lender may wonder why no one has ever lent to you in the past, and may reject a loan application. It’s good to begin building a strong credit history with taking your first loan from a lender that caters to first time borrowers.

 Check your loan applications

If your loan applications have been rejected in the past, it’s a good idea to give it a break for some time. Making too many credit enquiries can also lower your score; so, it’s better to concentrate of strengthening it rather than trying your luck with multiple lenders.

EMI repayment

The best way to improve your credit score is to grow it with financial discipline. You can achieve this by regularly repaying all your loan EMIs on time, each and every month. A simple way to ensure you don’t skip even a single one is to activate ECS or Direct Debit from your account, that will ensure your payments are made without you having to worry about your monthly due date. If you don’t want to link your bank account for direct debits, make sure you set a monthly reminder at least 6 days before the due date, so you have adequate time to make the payment and ensure it reaches your lender before the due date. A responsible lender will also remind you before your due date, to ensure you don’t let your score slip.

Credit card repayment

Contrary to traditional belief, credit cards are actually good for your financial health, given that you use them responsibly. A good practice is to use your credit card to pay for 30% of your expenses, and to ensure you have no past dues on your card at any point of time. Make sure you don’t skip a single credit card payment, and if you do, repay it immediately in the next month. Responsible use of a credit card can actually help your raise your credit score, and showcase your sound financial health!