How can you improve your credit score before applying for a new credit card?

Are you planning to apply for a new credit card but struggles to get one Credit Score Is it good enough to get a card? Well, you are not alone. This problem is quite common.

There could be many reasons for a bad credit score, also known as CIBIL ScoreAnd once you know the reason, you can fix it. First, you need to access your credit report and spot the inaccuracies, if any.

Alternatively, you may not have paid your credit card billor you missed your monthly loan payment. Or maybe you just started making money and don’t have a solid credit rating yet. But there’s nothing to worry about.

Here we share some tips you can follow to improve your credit score before applying for a new credit card.

Here are 6 key ways to improve your credit score:

1. Pay your outstanding bills on time: Making late payments can significantly affect your credit score. Therefore, it is recommended to pay bills on time, including credit cards and loans.

2. Avoid new credit inquiries: Every time you make a new credit inquiry, your credit score is affected, even if only marginally. Therefore, it is recommended to avoid a new credit inquiry unless it is absolutely essential.

Checking your ability to apply for loans simply out of curiosity is not a recommended practice as it affects your credit score.

3. Try to keep old accounts: The longer you keep an old credit account, the better. Just because you don’t use an old credit card doesn’t mean you should close it. So, it’s important to remember that closing your old credit account affects your credit limit.

4. Secured credit card: A secured credit card is one that is obtained by keeping an equivalent amount of money as collateral. It is a good and recommended way to build a solid credit profile.

5. Reduce your credit card debt: It is recommended to keep credit card debt below 30 percent of the total credit card limit to maintain an ideal level. credit utilization rateFor example, if your credit limit is ₹10 lakh, try to keep your credit debt below or around ₹3 lakhs.

6. Review your credit report periodically:It is important to review your credit report periodically, that is, at least once a year. When reviewing the credit report, if you find any errors, you will surely be able to correct them.

However, it is important to note that these suggestions are only indicative and not exhaustive. There may be other practical tips that work better in your case and could therefore help improve your Credit Score before applying for a credit card.