Credit Score: How to Improve Credit Score to Secure a Digital Loan?

Whether you are applying for a personal loan, home loan, or, car loan, there is something that you should always keep in mind, that after you submit your application for the loan, a credit risk assessment procedure would follow invariably and the lenders would go through your credit score to decide whether you are eligible for the loan or, not. Your credit score would be decided based on your credit history, and other factors, Now you must score really high on this scale to be able to convince the lender to grant you a loan. 

Before we proceed any further we need to understand what factors could possibly affect your credit score and make it really low, so that during the loan underwriting process your application might face the risk of getting rejected.

What could affect your credit score? 

Basically, your credit score judges your financial stability and the lender must find out through the credit underwriting process, whether you have the financial capability to pay back the money you are taking. Some factors could harm your credit score and these are as follows:

• One of the most significant factors that could affect your credit score is payment history. If you have delayed any payment in the past, or, worse have missed a payment then that can have a negative impact on your score. So, pay attention to your EMIs and other payments, if there is a missing number then you have to be aware. 
• The next factor that would affect your score is the length of your credit history. Your credit history length would include the age of your credit accounts like starting from your oldest accounts to the newest account and also your average credit account age. If you have a longer history then that could positively impact your credit score. 
• Your new credit account would affect your credit score greatly when you open too many new accounts back to back and there are many hard enquiries. The number goes higher and your credit score gets affected during the underwriting process.

So, be aware and be responsible with your credit score, so that you can be ready to be approved.