Are you struggling with a poor credit score and want to improve it considerably? If that is the case, there are a few tips and tricks that you can follow. These tips include clearing your pending dues, payment of future bills on time, and keeping your credit utilisation below 30 percent, among others.
Well, these are certain generic rules to improve your credit score that you can follow. But what would you do when you need bespoke advice to address the concerns relating to your specific credit situation?
One way to solve this problem is by engaging a credit consultant or guide, but if you cannot afford to hire one, you can also take the help of a Generative AI tool. Let us find out more about this.
Few scenarios in which you can take AI’s help
I. When you want to implement some generic advice but are unsure whether it applies to your case or not. For instance, when the rule of thumb says you should not close old credit accounts, but you still want to do this because it is costing money. You may seek a consultant’s help or seek suggestions from AI for this.
II. When even after following all the standard advice, your credit score continues to lag. You would want to do something about it. And you believe that it does not harm to seek AI’s advice.
III. When you are facing some specific issues which are not covered under the information given on the portals of credit information companies such as CIBIL or CRIF High Mark. Therefore, you need some bespoke advice from a consultant or an AI chatbot.
Let us understand this with the help of an example. Suppose a 27-year-old entrepreneur (let’s call her Garima) from Bangalore runs a small e-commerce business and has a CIBIL score of 620. Although fair, it limits her ability to secure a premium credit card with favourable terms. She pays bills on time, keeps credit utilization below 30 per cent and avoids frequent credit applications. Still, she struggles to improve her score
In the above scenario, AI tool such as Grok or ChatGPT can offer bespoke advice by following a few steps. It will gather data first by asking questions to collect information and find hidden patterns. Then it will carry out customised analysis using logic and knowledge. Finally, it can recommend you an actionable personalised plan.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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