I was looking for instant credit to pay my sister’s hefty college application fees last year, when I stumbled upon an app that disburses micro loans. After completing a quick 2-step verification, the money was credited to my account. However, due to financial issues, I paid my dues a little too late (including late fee.)
Recently, I opened the same app to check my eligibility but due to “bad repayment behaviour,” I wasn’t eligible for a loan this time. The message said, “We suggest you improve your credit profile and try again after 6 months.” — Oops.
That got me thinking. How can I improve my credit profile and get back in their good books? As a newbie to the credit game, I had to navigate this tricky terrain. It turns out “credit profile” is basically your credit score or a number that determines whether you are eligible for all kinds of loans. It depends on payment history, credit utilization, credit age, and credit type.
It also tells lenders that you are to be trusted with credit and it will be safe in your hands. A low score alerts them against it. When I failed to pay on time, my repayment behaviour was flagged as suspicious. Well, we are humans and life isn’t perfect. Right? Now, let’s see how to keep this practice going with LazyPay.
LazyPay’s Buy Now Pay Later feature gives the user a hassle-free 15-day repayment period, at ZERO added interest. It’s available as a super quick one-tap payment on online delivery apps like Swiggy, Zomato, Dunzo, Practo, MakeMyShow, etc. When you add items to your cart & choose LazyPay during checkout, the payment is done in a single click.
Next, open the app to get an overview of your available credit limit, total outstanding balance and total due amount along with the next due date. Pay it off at your convenience. You might also get rewarded with cashbacks for good repayment behaviour! Similarly, other types of credit or loans must be cleared on time to ensure that nothing stands in the way of you and loans.
To sum up, a credit profile basically entails the history of credit usage. Here are some hacks to keep your credit score healthy.
- Pay your bills on time for a period of six months consistently to increase your score.
- Pay your debts on time or at least, make the minimum payment — one late payment stays on your credit report for up to 7 years.
- Make sure to open accounts that are reported in credit bureaus — student, auto home or personal loans, or revolving accounts such as credit cards and lines of credit.
- Apply for credit when you need it — different types of credit card or loan applications lead to hard inquiry which may hurt your scores.
Calculate your Cibil credit to know your status. A score in the 750–900 range means eligibility for home loans, personal loans & credit cards, while 300–550 indicates the user’s difficulty in getting loans.
Now that you know how to maintain a healthy score, you can get a low credit score back up in no time. And remember to pay your dues on time to keep your financial health in check.