You never know when you might need a loan. It could be either for a house or car, or it could be a personal loan for a purpose that you probably never envisioned.
Thus, its best that you have a clean repayment history from the very beginning so that in case of an emergency or whenever you decide to take a loan, your repayment history won’t hold you back from getting a loan.
With a little discipline one can work on his/her repayment history and improve it for future. A few ways of doing the same are:
- Repay all your debts: You may have defaulted on a payment or may just be delaying it for months, but it is imperative that you repay all your debts before applying for a loan.
- Repay on time: Time is of the essence when it comes to repaying loans. Ensure you repay all your credit payments in time to maintain a good repayment history. For this, use reminders, mails, etc on your phone, laptops so you never miss a Due Date
- Borrow only as much as you can repay: People, especially youngsters, tend to get trigger happy when they start earning and get credit cards. They take on way more credit than they can repay and this results in defaulting.
- Don’t ignore your default payments: In line with the point above, once borrowers default they start ignoring the mails/calls from the banks thinking that the problem will vanish. However, this couldn’t be farther from the truth. One can still deal with a payment or a default before it snowballs (with accumulated interest) into a figure that’s beyond your reach.