• You should always pay your bills and loan installments on time, especially when you have more than one loan. Ensure that you do not miss even a single payment towards your loan.

• Credit score also depends on the number and type of loan accounts that you have. Credit score depends on whether the loan is secured or unsecured. Secured loan is considered safer since it is backed by an asset. Too many credit card accounts might also hurt your credit score.

• Plan a budget for your family so that you are eligible to take a loan. Your loan application should not be rejected after the processing.

• Ensure that none of your cheques is bounced on a loan or a credit card. Cheque bounces are very bad for your credit score.

Lenders look at your scores all the time. They look at your scores when deciding, for example, whether to change your interest rate or credit limit on a credit card, or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That is why they form a vital part of your financial health.