Bad credit can be burdensome especially when you need a fresh credit from a bank, and you are denied. It can be stressful to have bad credit in such pressing situations. To be honest there are no shortcuts to improving your bad credit score. But there is certainly a way to get relief if you follow responsible credit behaviour.

After finding your out your credit score has reduced, you may take steps to find out the reasons for the drop. You may pull out your credit report from the credit bureau and look out for the reasons.

If you have outstanding dues with the lenders, you need to repay the amount in full to prevent your credit score from dropping. If you have settled your loan or credit card account in the past, it may show as ‘Settled’ in your credit report which is considered a negative status. You need to repay the lender in full to improve your credit score.

After having cleared the past loan issues, adapt a health credit behaviour to improve your credit score. Following are some of the recommended credit behaviours:

  • Pay your bills on-time
  • Keep your credit card utilisation ratio low
  • Have a mixture of credit
  • Check your credit score frequently
  • Avoid applying for multiple credits simultaneously

When you follow the steps given above, you will gradually have an improved credit score which can make you eligible for loans and cards at better terms.