CIBIL Score has become an extremely important tool in today’s life as all the potential lenders & banks check it as the consumer’s creditworthiness, before offering loan specially unsecured loans. The CIBIL report or the credit report is the detailed document that gives the information of your entire credit history; here we will discuss 10 important ways that will help you to raise your credit score. One thing which should always kept in mind that its a game of patience & it won’t happen overnight.
1) Keep track on your credit report:-
Always keep a check on your Credit report, it will help you to increase your credit score in 2 ways, 1st it will tell you about the delayed payments that have dropped down your credit score. Secondly it will tell you any wrong information that has been recorded in the CIBIL report by fixing of which can ultimately increase your CIBIL report
2) Paying credit card dues on time:-
You should always pay the credit card bills within the due period of time. By paying the minimum amount due which is approximately 5% of the total billing amount in the cycle might help in escaping late payment charges but it will lead to interest & takes being added to the bill in the next cycle will increase the debt. Hence paying dues on time will definitely help you to raise the credit score in long run.
3) Showing you old debt on your report:-
Many people have a habit of removing the old debt from the report as soon as it gets paid off. However it should not be done as it is the sign of your good credit report & hence it should be visible on your credit report.
4) Restrict your credit utilization:-
One should always opt for high limit credit & limit your card utilization upto 30%. It will help to jump up your CIBIL Score.
5) Choosing Multiple credits:-
To increase the credit score, one should choose a mixture of credits such as secured & unsecured as well as long & short term credits.
6) Avoid giving a hint of risk:-
One should never skip any payment as suddenly start giving less payment as its a big indicator that you are under stress or going through a financial crisis. It will certainly lower down your CIBIL score.
7) Timely payment of EMIs:-
On time payment of EMIs can make your creditworthiness intact. It will certainly increase your credit score.
8) Payment of utility bills on time:-
The utility bills include your phone, electricity or internet bills. These are generally not shown in your credit but in case you don’t pay these bills on time, the credit provider may report your debt to a credit deporting agency, asking them to record the default on your Credit report.
9) Correct the inaccuracies:-
If you find any kind of Wrong information particularly any transaction made through the vendors. Work on that as it is mandatory for any financial organization to resolve those queries within 30 days. After these disputes get resolved, your credit score will certainly increase.
10) Problem of Joint applicants:-
In case, somebody has taken loan & you are the joint applicant & he has defaulted on the payment then you will also lose out on your Credit Score as it will also be reflected one your Credit report. The best way is not to go for any joint loans & if you have taken, do the payments on time.