With the running month of August, Independence is the theme that flows in the air. Independence in itself f holds various meanings for different people, for some it may mean taking their life decisions and for some even buying the phone of their choice is independence. Seldom do we realize that all these choices are yet dependent on a single factor, money.
This year when we celebrate our 73rd Independent year and leverage freedom, let us pledge to begin with financial independence or financial freedom. Financial freedom largely depends on your credit score. A credit score is a reflector of one’s financial history and behavior. It tells about your history of loans taken from a bank or other lending institutions and monitors your repayment behavior. Higher the credit score, the higher the chances of loan approval.

Here are 3 steps one must follow in order to realize financial freedom by maintaining a good credit score;

Do not miss-utilize your credit opportunities
There are plenty of opportunities available in the market which allow you to apply for credit and have luring offers for you. do not fall prey to these offers and make sure you apply for credit very cautiously. If there is a need for more than one loan, maintain a balance between secured and unsecured loans. Home loans, car loans come under the category of secured loans and credit cards, personal loans come under the category of unsecured loans.
Possessing a credit card does not necessarily mean utilizing your credit limit to the maximum, you must exercise control over your spending habit.

Repay every time you borrow
Irrespective of the source of lending, make sure you repay every time you borrow money. Even if this is in case you spend on your credit card, do not over exceed your time limit, this will harm you in two different ways. One, you will have to pay huge interest on your borrowed money and secondly you will be hampering your credit score due to non-payment or untimely payment.
Pending credits can turn into huge snowballs without coming to notice and can create financial havoc later.

Be vigilant with your credit score
Always keep an eye on your credit score. A bad credit score will lead to an unpleasant surprise when you apply for a loan. Also, you need to be very vigilant if you have co-signed any joint accounts of have been a guarantor to someone else’s account or loan. The liability lies on you to ensure timely payment from their side and can adversely affect you in case of non-payment.
By following these simple steps and being aware of your finances, you can exercise and enjoy financial freedom in your life.