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People can avoid late payments by putting payments to auto-pay, automating reminders, and creating a monthly task sheet.
A credit user should keep their credit utilization ratio below 30% of the entire available credit limit.
It simply means don't spend more than you make. When spending exceeds earnings, credit becomes necessary, which may lead to additional spending and debt collection.
To keep a good credit score, one should always choose a combination of credit because the risk component balances out, resulting in a better credit score.
Avoid exceeding your credit limit, as this increases your credit use ratio, which reduces your CIBIL score.
Closing old credit cards or accounts cancels your previous record with the bank and has a negative influence on your credit score.
Checking your credit score regularly allows you to understand the situation of your credit and provides you the opportunity to improve it.