Important Ways to Increase Your CIBIL Score

Important Ways to Increase Your CIBIL Score

CIBIL score has a relevant role in making your loans approved. CIBIL credit report is directly related to the score of your credit cards. Try to make your credit score better first then your CIBIL report is automatically good. Maintaining a great CIBIL score will help you get the new loan and credit cards immediately without paying high interest. It will also make your loan approved without wasting much time and saves your time too.

You get privileges in life only when you score big in life. Likewise, your CIBIL score must be high to make your loans get passed instantly.

The maximum CIBIL score is 900, the least you can achieve is 300. The lowest CIBIL score will not help you in any way. However, you can do many things to improve your CIBIL score instantly. We have curated a list of ways to increase your CIBIL score. But before this, let's understand the CIBIL score.

Also Read: How to calculate credit score

What is CIBIL Score?

CIBIL (Credit Information Bureau India Limited) is the outcome of your whole credit history. A CIBIL Score is between the ranges of 300 to 900. It is calculated according to your credit reports and the more you score is better. 

Some of the best ways to improve your CIBIL score are as follows:

• Pay the EMIS before the deadline: You are looking at the goal to make your credit score better. Firstly, make your due payments and ongoing payment delivered on time. Delaying it may impact your CIBIL credit score as they mention the duration of delay on it. Paying EMIS on time will help you create a great impression on your credit card history. Hence, you can make a clean transaction history on your credit cards. Plus, it marks a plus point in your CIBIL score too.
• Use your credit card in limits: Using a Credit card for every purchase can be over the limit of your credit card. It can make a negative impact on loan lenders too. Over usage of credit cards shows that you can't live on a budget or under some deadline. So it is always helpful that you use your credit cards in limits and set a boundary around their usage. Using your credit cards below your salary is a healthy point to add when you aim for a higher CIBIL score.
• Keep a close look at your credit report: Just like you keep a close look at your diet when trying to lose weight. Similarly, it is a healthy practice to keep checking your credit reports regularly. Credit reports will open up many things that are creating barriers to your CIBIL score. You can get errors in payment, transactions, delaying of payment, etc on your credit reports. Then you can call the bank or CIBIL to make the corrections to increase your CIBIL score.
• Try to overcome the problems in your credit report: Once you figure out the errors and problems in your credit report. You can directly go to the official website to rectify them: www.CIBIL.com. Then you can make your CIBIL report corrected and clear your history. Any errors or disputes in your report can be rectified within 30 days.
• Apply only once for a credit card: If you want a credit card and you applied to it. You should wait for the approval of your credit card. Until then don't try to apply for more credit cards. Moreover, if your credit card request gets rejected then don't apply again for a credit card. One rejection lowers the CIBIL score. But when you apply more times than you will end up having a lower CIBIL score. Hence, your CIBIL score will eventually get affected badly. So it is better to wait and try to increase your CIBIL score.
• Keep your loans minimal and secured: While it is always advisable to not go for too many loans. Also, there are two categories of loans: secure and unsecured. Applying for secured loans makes your credit report approachable. Whereas unsecured loans create a negative stir for the bank. The best solution is to not take loans at first or try to apply them at a minimal rate. The unsecured loan also includes credit cards henceforth; a secured loan with a minimum limit is the choice you have to make.
• Don't go for joint accounts: Beware of having your account with any other applicants. The problem here is you have to face the consequences of other applicants' errors or mistakes. If the other applicant has errors in their payments history. Then you eventually fall into trouble. Your CIBIL score automatically goes down when any of the applicants have a problem with the credit report. Not having a joint account is the best way to escape from further complications related to the CIBIL score.
• Have multiple credit cards: A credit score is maintained when you have a credit card. Having many different credit cards will only enhance your CIBIL score. One type of credit card is not very beneficial for improving your CIBIL score instantly. Always prefer applying for different credit cards. Then you contribute more points to increase the CIBIL score.

Conclusion:

The bank and CIBIL people will always pinpoint some errors or problems in your CIBIL reports. However, what you can do is to do your best to improve your CIBIL score. You just have to focus on your credit report to achieve the goal to score 900 of CIBIL score. Make sure to have a clean transaction and borrowing to make your credit reports error-free.

Furthermore, having a good CIBIL score is the outcome of your consistency and discipline. You have to be very careful with your payments, loans, bills, EMIS paid on time and not delayed. Make sure that you remember the due dates of each payment you have to make. Your CIBIL score will increase over time, once you work on making all your debts clear and sorted. Moreover, you can practice the above steps and follow them to improve your CIBIL score.

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