Know 5 key tips and tricks to improve your Credit Score with minimal effort

Your credit score is calculated based on your credit history. So if you have not been judicious with your credit cards or loans in the past, you will have a low credit score. If you have a low credit score, taking the following steps will improve your credit score over time.

Improving your credit score might seem like a time-taking and difficult task. But there are multiple reasons why you should take the trouble of maintaining a high credit score. Here are some key advantages you get, if you have a high credit card score:

1. A good credit score indicates that you are responsible when it comes to repaying loans and credit card bills. No financial institution wants to lend money to a person who is not trustworthy.

2. If you have a high credit score, banks and other financial institutions will grant you a loan at a lower interest rate. A good score also means lesser paperwork!

3. Though various other factors play a crucial role while granting a loan, one cannot ignore that your credit score and history is one of the main deciding factors.

4. A good credit score will make your loan application more attractive and can increase the speed at which your loan application is processed.

5. Also, a higher credit score increases your chances of getting approved for a longer tenure to repay your loans. This means you can pay smaller EMIs for a long time, which means less burden on your pocket.

6. The increased credit card limit is another benefit you will receive if you have a higher credit score.