How to increase your credit score using LazyPay?

To get your hands on any of the best credit cards in the Indian markets, you need a good credit score of 650-750

FPJ Web DeskUpdated: Tuesday, June 28, 2022, 07:08 PM IST
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When you’re just starting to build your credit, it can be tricky to get started. In order to get a mortgage or auto loan, you’ll need a good credit score. To get your hands on any of the best credit cards in the Indian markets, you need a good credit score of 650-750. Anything lower and you may not be able to secure the loan that you need. Sometimes many of us are just looking for small credits to smartly manage our monthly finances by using a credit card for our essentials and daily expenses. However, if you are a new earner or a student, even that becomes a difficult task to figure out without a credit history.

Fortunately, at the height of the digital wave in the country, digital credit cards have come up as an alternative to the best credit cards. It not only gives access to fast and secure small loans but also makes for a great facility to increase your credit score.

Interested? Let’s dive in to understand how a digital credit card can help with your credit score. But before that, let’s understand some basics:

What is a credit score

A credit score is a number between 300 and 850 that indicates a person’s creditworthiness. There are a few different credit bureaus that will report your credit score to potential lenders:

• TransUnion CIBIL

• Equifax

• Experian

• CRIF Highmark

Out of these four, TransUnion CIBIL, often simply called, CIBIL, is the most popular one in India. LazyPay, one of the fastest spreading digital credit cards in India, has a partnership with CIBIL.

Why is credit score important

A simple way to understand why a credit card is so important is to think about the impact it can have on your daily life. Having a poor credit score can result in you not getting financial help in emergencies and the general ability to manage your monthly finances.

In addition to making you eligible for loans that you may need, it also helps with quick loan approvals, lowers your loan interest rate, adds value to your visa application, and more. A consistently good credit score also makes you eligible for higher credit scores.

With these basic clear, let’s now look at what are the ways in which a digital credit card can help increase your credit score.

Review your credit reports

Credit reports can contain a variety of errors and incorrect information. So, it’s important to review your credit report frequently to report any discrepancies and get them corrected. While critical, it’s equally cumbersome to get quick access to your credit reports.

With LazyPay, you can check out your credit score conveniently - anytime, anywhere on your smartphone. Having quick access to such information and proactively rectifying the error, keeps your credit report in check.

Pay your bill on time

Nothing magical - yet pretty impactful and ignored aspect of owning even the best credit cards. It’s important to keep up with your monthly credit card bills on a timely basis. Missing one payment can lower your credit score by as much as 50 points.

LazyPay makes sure you never miss a payment by sending personalized alerts. And when you make your credit card repayment on time, it automatically reflects positively on your credit score.

Aim for partial credit utilization or less

While you may have a high credit limit, constantly maxing out does not help with your creditworthiness. In fact, it lowers your credit score. That’s why it’s advised to limit your credit expenses to around 30 per cent a month. However, going above the limit to deal with an emergency is not a bad idea.

With LazyPay’s credit tracker, you can keep a close eye on your credit limit and make wise decisions about limiting your credit usage.

The takeaway

Your credit score is a major factor in whether you can get a personal loan or not. But to increase it, first, you’d want your hands on one of the best credit cards. However, that may not be feasible for everyone, so LazyPay digital credit card makes for a great alternative. It requires no initial credit score, has a partnership with CIBIL, and can be wisely used to increase credit score!

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