Here are some good money management policies to improve your credit history.
1. Keep affordable levels of credit: Don’t overstretch yourself. Recognize that loans, however small they might be, need to be paid back. Live within your means.
2. Avoid falling into a debt trap: Don’t borrow fresh money to pay off your old dues to another lender. You will just fall deeper into a vicious cycle of debt.
3. Pay your dues on time: Whether they are credit card bills or utility bills or any kind of loan commitment you have, pay off your dues on time and as much as possible in full.
4. Avoid cheque bounces: Incidents of cheque bounces are being tracked and can adversely affect your ability to get a loan when there might be more at stake for you.
5. Don’t make too many loan applications: Each time you apply for a loan (or credit card) your applications are being tracked. It is considered bad credit behavior to be frequently looking for credit cards and loans.
Source : Reuters
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