We all know that covid 19 is continuously affecting the world economy significantly. The financial industry is continuously affected by the same . In this article I am going to tell you how to maintain the credit score in this crisis.
We all know that the person who is applied for the loan like applying for home loan, applying for car loan, personal loan the lender will always consider your credit score and on the basis of the credit score your loan amount and interest rate will be decided. So, with this we know that credit score is so important.Score above 700 is considered to be the best.
Balance in secured and unsecured loan: There should be a good balance in secured loan and unsecured loan. The lender will consider more secured loans like home loan, car loan, loan against property because these laon are at low risk from the lender side. The unsecured loans are like personal loans, loans against credit cards they consider less comparatively.
Credit utilization under 30 percent: The credit utilization (CUR) means the credit used upon total credits. You have to maintain this under 30% otherwise this will lower your credit score.
Always apply for a loan when it is actually required because always opening a new credit score can also affect the score of the credits.
Follow some of the rules you will definitely manage your credit score.
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