How can the company or individual improve their credit score to qualify for a loan?
Curious about loan
To improve credit score, individuals or companies can take the following steps:
1. Make timely payments on all outstanding debts and bills, including credit card payments, loan EMIs, utility bills, etc.
2. Keep credit card balances low and maintain a low credit utilization ratio (ideally below 30%).
3. Avoid applying for multiple loans or credit cards simultaneously as this can negatively impact the credit score.
4. Regularly review credit reports and dispute any errors or inaccuracies with the credit bureau.
5. Consider taking a secured credit card or loan, which involves pledging collateral such as a fixed deposit or property, as this can help build a positive credit history over time.
By following these steps and demonstrating responsible financial behavior, individuals and companies can gradually improve their credit score and become eligible for better loan options with more favorable terms and conditions.