Your Experian credit score is an important factor that decides whether you are eligible for borrowing or not. It is important to build good credit in order to gain financial independence in times of crisis or emergency. Having a good credit score is always beneficial, which makes it easier for individuals to have credit at the time of need. A good credit score check free online not only makes approval easy but also makes your loan very affordable. It is one of the best ways by which you can get any kind of high-value loan at the time of need, like a housing loan or a car loan. Individuals don’t end up draining their savings or income if they are able to take credit from the market at the time of need.
What is a secured credit card?
A secured credit card is one that has collateral or security pledged with a bank or non-banking financial institution. It is not unsecured in nature. This means that when you get a secured credit card, you can automatically improve your credit score. Credit cards are an important factor that decides whether you have a good credit score or not. Every activity on credit cards impacts your credit report either positively or negatively. There are various credit card activities that can actually help you increase your credit score. If you have a secured card, here are some of the ways in which you can improve your credit score.
Have a balanced credit mix
If you have unsecured loans on your credit profile, having a secured credit card is always one of the best ways. It will help you maintain a good credit mix, which eventually improves your credit score. It is a good blend of unsecured and secured loans that improves your credit report health. Having a good secured credit card makes you eligible for borrowing if you are able to meet your payments in a smooth manner.
Make timely payments
Through your secured credit card, you can always maintain a clean track record. Payments are an important factor that determines whether you will have a good credit score or not. If you make your payments on time, it will be very easy for you to improve your credit score. Automate your payment or set reminders so that it is easy for you to make the payment by the due date. Do not pass the due date when you have to pay your credit card bills. If you have a smooth repayment history with a clean track record, it will always help you build a good credit score.
Pay the entire amount of the bill
If you want to improve your credit score through your secured credit card, you need to make a full bill payment. Pay your bills without leaving any money on the table. It is true that credit cards have the payment option of a minimum balance, but one must not avail of the same. You need to make sure that you make a full bill payment without any overdue or outstanding balance. Keeping an outstanding balance every month on your credit card will eventually result in credit loss. On the other hand, if you keep paying the bills in full, it will help to improve your credit score.
Credit utilisation percentage
It is very important to maintain a good credit utilisation ratio if you have to improve your credit score. The credit utilisation ratio is the ratio between the total credit limit given by the loan provider and the credit limit exhausted by the borrower. If you end up exceeding your credit limit on a credit card, it will damage your credit score. You always need to keep the credit utilisation ratio below 30%. If you do so, it will help you in the credit building process. A good credit utilisation ratio will always help you get a good credit score. For business loan interest rate visit : business loan interest rate.
Long credit history
The longer the credit age, the better it is for credit building success. If you have a secured credit card, make sure you do not close it yet, even if you’re not using it. If the credit card has a long transaction history with a clean track record, you need to keep it open. Credit accounts with a long credit history always improve your credit score. Even if you do not use it, it is fine to keep it open so that it can improve your credit score over time. Make sure you are not closing credit card accounts if they have a clean track record and a long credit history to improve your credit score
A good Experian credit score is important to be eligible for any kind of borrowing. A credit score check free online option is available on the Clix Capital website. Check your credit score today to stay updated.