How to Improve your CIBIL Score

Every organization check various parameters to offer loan to consumers but RB1 i.e. Reserve Bank of India has made it Compulsory for all the Banks to check the CIBIL score of all the applicants before assignments of loans. The CIBlL report is the detailed document indicative of the entire credit history & record. It includes applicant’s personal information, contact information, employment history, credit limit & credit balances on various credit cards. 

One should always try to maintain the CIBIL score atleast 750 so that the loan can be readily available to you when you are in need of it.

Let us discuss some of the points by taking care of which can drastically improve your credit score. One thing that always is kept in mind is that it won’t increase overnight, it takes time. 

1) Checking your credit Report time to time:-

The 1st & very essential Step is to keep checking your CIBIL Score at regular interval of time. It will help you in increasing the credit score in 2 ways. Firstly by telling you the pending dues that is responsible for your low CIBIL score. Secondly, you can easily get to know the wrong Information which has been recorded in the credit report in the form of defaults or delay in payments. You can easily contact the bank & CIBlL to correct the information, hence pushing your CIBIL score in upward direction. 

2) Payment of Credit Cards within due period:-

It is always advised to eliminate credit card balance. You should only use that much amount on credit card which can be repaid within a due period. The unpaid dues on Credit card pulls down your CIBIL Score. One should always have less number of Credit Cards, so that it is easier to track the payments of those credits.

3) Timely Payment of EMIs:- 

If you are dreaming to Purchase something big like car, home or other luxuries make sure that you can pay their EMIs & bills within stipulated period of time. Paying EMIs one time is an important factor in increasing your CIBIL Score.

4) Showing your old debt on your report:-

Showing the old good debts is very important as they are the indicator of our Creditworthiness. The longer your history of good & well paid debt is, the higher will be the CIBIL score. Many of us have a habit of removing debt from our reports as soon as they are paid off, however its not a not a good idea. Let it be visible on the report as it indicates our good & strong financial health. 

5) Restrict your Card Utilization:-

One should limit the usage of Card to 30%. It is advised to go for a high limit credit card which will certainly increase your CIBIL score.

6) Opting multiple credits:- 

You are a advised to go for mixture of loans which includes secured & personal loans and also 

long & Short term loans. It will help you in the achieving higher Credit Score. 

7) Avoid giving a hint of risk:- Never Suddenly start giving less payment or missing payment since it is a big indicator of a borrower under stress. It decreases the CIBIL score.

Leave a Comment