A credit score is a report of an individual’s credit file that gets generated once a person starts to spend money on credit. It is a record of repayments, credit history, and inquiries. One can access credit cards and loans based on their credit score. Hence, maintaining a good credit score is essential for further credit in the future, and bill payment apps help track your credit score for free.
Four credit bureaus in India track your credit score: Experian, Equifax, CRIF, and CIBIL. Every bill payment app provides all services to check your credit score.You can increase your credit score or maintain a good position.
In CRED, you can keep various credit cards, such as an axis bank credit card, to pay the bill.It also helps you educate regarding credit score and when it increases or decreases. It also allows you to define why your credit score is affected. Here are a few reasons why your credit score has been impacted.
- Repayment History:- Any default in payment of a credit card or loan affects your score and decreases your credit score.
- Taking excessive credit:- Even if you make payments on time, using too much credit will harm your credit score.
- Close to limit:- When you use your credit card to a maximum limit, it again harms your score as it indicates that you require more and more credit.
- On the closure of Credit Card:- Your credit score will be affected if you close an active credit card, your credit may increase or decrease, but it will not specify the reason that has concerned your score.
- Having more debts:- If you have more debts, it will affect your credit score, and if you make your payment on time, you can increase your credit.
These are a few reasons why your credit score can be affected, and payment apps help you with the increase or decrease of your score.Banks try to create a user-friendly tool such as IDFC credit card holders to manage their accounts on the go. The app allows users to view their account summary, check their reward points balance, pay their bills, request a new credit card, and more.
There are several things you should avoid to maintain a good credit score:
- Missed or late payments: Make sure to pay all of your bills on time, as late or missed payments can significantly impact your credit score.
- High credit utilization: Try to keep your credit utilization (the amount you use compared to your credit limit) below 30%. Using less of your available credit can help your credit score.
- Applying for too much credit: Every time you apply for credit, it can result in a hard inquiry on your credit report, which can temporarily lower your credit score. Try to limit the number of credit applications you make.
- Closing credit card accounts: Closing a credit card account can reduce your available credit, increasing your credit utilization and lowering your credit score.
- Not checking your credit report: Review your credit report regularly to catch any errors or fraudulent activity that could impact your credit score.
Various apps, such as the ICICI credit card app and CRED, lets you manage your credit card from anywhere. View account summary, check rewards points, pay bills, & request a new card.By avoiding these behaviors, you can help maintain a good credit score and improve your chances of getting approved for loans, credit cards, and other financial products.