310 Credit Score: Is it good or bad? Tips to improve your score

310 Credit Score

Is it good or bad?

Your score falls within the range of scores, from 0 to 600, that is considered very poor. A 310 CIBIL Score is a significantly below the average credit score.

A 310 CIBIL Score is a significantly below the average credit score.

Many lenders choose not to do business with borrowers whose scores fall in the very poor range, on grounds they have unfavorable credit. Credit card applicants with scores in this range may be required to pay extra fees or to put down deposits on their cards. Utility companies may also require them to place security deposits on equipment or service contracts.

HOW TO IMPROVE YOUR 310 CREDIT SCORE?

The bad news about your CIBIL Credit Score of 310 is that it's well below the average credit score. The good news is that there's plenty of opportunity to increase your score. A smart way to begin building up a credit score is to obtain your CIBIL Score report. Along with the score itself, you'll get details that spell out the main events in your credit history that are lowering your score. Because that information is drawn directly from your credit history, it can pinpoint issues you can tackle to help raise your credit score.

FACTORS THAT CONTRIBUTED TO YOUR 310 CREDTI SCORE

Public Information

If bankruptcies or other public records appear on your credit report, they can have severe negative impacts on your credit score.

Payment history

Delinquent accounts and late or missed payments can harm your credit score. A history of paying your bills on time will help your credit score. It's pretty straightforward, and it's the single biggest influence on your credit score, accounting for as much as 35% of your Credit Score.

Credit usage rate

To determine your credit utilization ratio, add up the balances on your revolving credit accounts (such as credit cards) and divide the result by your total credit limit. If you owe ₹40,000 on your credit cards and have a total credit limit of ₹1,00,000, for instance, your credit utilization rate is 40%. You probably know your credit score will suffer if you completely use your credit limit by pushing utilization toward 100%, but you may not know that most experts recommend keeping your utilization ratio below 30% to avoid lowering your credit scores. Credit usage is responsible for about 30% of your Credit Score.

Length of credit history

Credit scores generally benefit from longer credit histories. There's not much new credit users can do about that, except avoid bad habits and work to establish a track record of timely payments and good credit decisions. Length of credit history can constitute up to 15% of your Credit Score.

Total debt and credit

Credit scores reflect your total amount of outstanding debt you have, and the types of credit you use. The Credit Score tends to favor a variety of credit, including both installment loans (i.e., loans with fixed payments and a set repayment schedule, such as mortgages and car loans) and revolving credit (i.e., accounts such as credit cards that let you borrow within a specific credit limit and repay using variable payments). Credit mix can influence up to 10% of your Credit Score.

Recent applications

When you apply for a loan or credit card, you trigger a process known as a hard inquiry, in which the lender requests your credit score (and often your credit report as well). A hard inquiry typically has a short-term negative effect on your credit score. As long as you continue to make timely payments, your credit score typically rebounds quickly from the effects of hard inquiries. (Checking your own credit is a soft inquiry and does not impact your credit score.) Recent credit applications can account for up to 10% of your Credit Score.

TIPS TO GET A HIGHER CREDIT SCORE THAN 310

Consider a credit-builder gold loan

Gold loans can help build borrowers' credit profiles, by demonstrating the ability to make regular monthly payments. When you take a doorstep gold loan with indiagold, you get a loan where you only need to pay the interest amount without worrying about the principal repayment. Gold loans at indiagold also have a very low interest rate, starting at just 0.69% per month. Once you've paid off enough installments, you get your gold back. Moreover, pickup and release of gold from your home are free. It's a neat way to not only utilize the gold that may be lying as a dead asset at your home, but also bump up your repayment history in front of the national credit bureaus, which can lead to credit-score improvements.

Pay your bills on time

Paying your bills on time is the most important thing you can do to improve your credit score. It shows lenders that you are responsible with your money and that you can be trusted to pay back what you borrow.

Avoid high credit utilization rates

Credit utilization, or debt usage, is the basis for about 30% of your Credit Score. Keep your utilization rate below about 30% can help you avoid lowering your score.

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