Everyone is aware that a good CIBIL score is an indicator of your responsible behavior towards repayment of funds. A credit score of 750 & above is considered as good as it showcases the applicant’s financial fitness & stability. If you have a credit score of 750, the lenders will see you as a worthy consumer & which will fetch you a better rate of Interest on a loan or even get you a higher sanction.
Now if you already have a credit score of 750. We will discuss here. Some very important tips that will enable you to maintain you score so that you are always in a condition who can easily borrow personal loan when in need.
- Keep a check on Credit utilization ratio – Your credit utilization has a big impact on your credit score. It is advised not to reach the credit limit month after month as it negatively affects the CIBIL Score. The more you restrict the credit usage as per the allotted limit, the higher will be the CIBIL Score.
- Opting for a longer Tenor while applying for a loan:-Whenever you apply for any loan, you should always go for a longer period of repayment. The longer period will help you in keeping the EMIs low so that you can pay it on time. Paying the EMIs on time increase your credit score
- Avoiding Multiple Debts at one time: – One should not take multiple loans in the same period of time. Always remember to pay one loan completely & then take another loan. Taking too much debt at the same time pushes your Credit Score in a negative direction. It also shows that you are in a various cycle of debt & have insufficient funds.
- Keep a check on your CIBIL report for mistakes & rectify them: – You can easily check your CIBIL report for free by putting some basic details. It is necessary because sometimes CIBlL can make certain mistakes while updating some records that can lower your CIBIL Score. But if you keep check on the records you can easily correct them & hence increasing your Credit score.
- Try to choose different form of Credit: – In case you don’t have any credit history then you will have a low CIBIL Score. To increase your credit score, you are advised to borrow the mix loans like both secured & unsecured as well as of longer & shorter duration, this will drastically push your & Credit score in upward direction
- Always in Maintain your old credit cards: – Keeping the old credit cards functional & paying the dues on time enhances the CIBIL Score. It also builds a strong & lengthy credit history.
- Timely payments & be disciplined with Credit: – Always pay your EMIs and other installments on time. Delaying your EMls or other payments not only forces you to pay entra penalty but also lowers your CIBIL Score. In case, you have taken multiple loans, always set reminders for the same so that you can pay them off before their due date.
- Avoid unnecessary loan enquiries: – Always enquire for any loan if you need it. If you are rejected for any Loan application it hampers your CIBIL score. Always check your eligibility before applying for any loan.
Maintain a good income & expenditure ratio:- Before applying for any credit always think about the repayment also. Decide it according to your income. It’s not only a good habit but also helps in keeping your CIBIL Score high.