How can I fix my credit by myself?

Having good credit health ensures lenders of your creditworthiness and increases your chance of getting potential loans easily approved. So, it is necessary that you maintain financial discipline to maintain a good credit score.

How can I fix my credit by myself?

There are ways to maintain financial prudence and fix your credit score by following certain suggestions as below:

Regularly review the credit report

Always keep track of your credit report as it contains crucial credit information apart from the credit score. Check whether the personal and related particulars are accurate and also check for any errors in your credit information.

Raise a dispute for errors 

For any errors in your credit report, raise a dispute with the lender or credit bureau at the earliest. This can be done online or offline. It is always prudent to get such errors rectified at the earliest as they can otherwise adversely impact our credit score.

Make regular bill payments

Ensure that all types of debts including credit card payment dues, loan EMIs are made on time on a regular basis. Prompt payment of debt is integral to have a good credit score and ensure the lender of your creditworthiness when it comes to loan repayments.

Limit credit utilisation

One should also limit their credit utilization ratio and keep it below 30% of the overall sanctioned credit card limit. Utilization above 30% is considered as a high utilization factor negatively impacting credit score. Not making use of your credit card also leads to a low credit score so one should ensure there is proper credit utilisation.

Avoid Multiple Debts

Having multiple debts including credit card entails high-risk behaviour on the part of the borrower. Lenders may consider such borrowers risky and if you default on your loan payments, then this will adversely impact your credit score. So, avoid having too many debts or credit cards simultaneously to maintain a good credit score and repay loan EMI or credit card outstanding on time.