Given a chance all of us would like to stay away from scary situations and also stay away from scary people; so there is reason for you to have a scary credit score! Credit score is a reflection of one's credit health and poor score could be a big put off for lenders when you are trying to get a loan, a fresh credit card or a bigger credit limit. So for some reason if you have a scary score then we have a few suggestions for you so th`at you do not lose an opportunity or are unable to fulfill your dreams owing to a low credit rating. So how can you make your credit score less scary?
Nothing as scary as missed payments on your credit report! If these missed payments could speak, it would be like a big "boo" in a terrifying voice every time some lender pulled your report. These missed payments say "stay away from me; I cannot be trusted to pay on time". Repayment history constitutes 35% to the score calculation and hence is the biggest cause for a good score or a bad score. So if you have missed or delayed payments pay them as soon as possible, while they will continue to reflect on the report (record of last 36 months is included in the report) but at least they will mitigate further damage.
After repayment history credit utilization is the next big thing when score is to be calculated. So whether you pay all your dues on time or not, if your credit card bill exceeds 35% of the sanctioned limit we hear alarm bells ringing. Unless you want to be scouting for a lender who is willing to give a loan with bad CIBIL score the next time you want to borrow money take care of this aspect; now! Get your credit card spending under control and see how it makes your score less terrifying. A high utilization score is an indicator of risky behavior and the user being credit hungry.
Carrying unnecessary especially negative baggage can make life unpleasant and credit scores low. Don't let a credit card bill that has remained unpaid and is collecting interest or a loan for which you forgot to take a NOC and is an open loan till now or some other disputed dues haunt your credit report. Speak to the lender and negotiate; most of the times lenders are willing you meet halfway as long as you are reasonable. Pay the dues and ensure that these accounts are then reported as "closed" or "paid" and not as "settled".
Sometimes the problem may not be because you made a mistake but because somebody else made one. Either way the credit score will take a hit! It is advisable that you check your credit report regularly whether you seek credit or not. You can access free CIBIL Report and then check for any errors in it. Check all details in the report carefully and if you spot a loan that does not belong to you, a missed payment that was not missed and so on then it is time to act! Once you spot these errors get in touch with CIBIL and raise a dispute; the rating agency will get in touch with the lending agency and will get the error rectified which will make your report look less intimidating.
If you are not able to figure what the problem and why your report appears to make scary faces whenever someone looks at it, remember there is professional help available. There are credit repair agencies that can help you deal with it. Though these agencies cannot work a miracle, they cannot remove any item from the report but they can help you identify what the problem is and then help you deal with it. Since these people are trained to this, they are likely to spot the problem when you can't and can give you a workable and practical solution.