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How to increase your CIBIL score?
Posted on: 09/Mar/2018 4:34:19 PM
As most of you probably know, CIBIL score is used as a scale to measure your credit worthiness. It in fact decides your loan eligibility. With a good CIBIL score, you will be eligible for bulk, fatty loan at favorable rate of interest, whereas low CIBIL score can wipe away your opportunity to get the loan sanctioned! If the latter is the case, there is nothing to worry too, as you can work out to improve it.
So, what are the possible ways of improving your CIBIL score? Here is all you need
Prompt payments
CIBIL score primarily gets affected due to improper payments or defaulting done. So, those with low CIBIL score should first of all show all their attention to promptly paying the loan installments and clear credit card bills. Late or missed credit card payments are a definite NO! So, grab your phone and set a reminder to alarm you for the upcoming due, cos you don’t want the CIBIL score low!
Refrain from applying for credit without certain need
Are you of that kind who applies for every kind of credit card that pops up in the market? Lenders tag this as credit hungry behavior! This will also bring down your credit score thus resulting in too many enquiries in your name. Of course, your credit history upticks when you apply for new credit card, but do not do too much of it!
Keep the hard enquiries less
Every time you apply for credit card or loan, the lender would seek your credit score from credit bureau which we call as hard enquiry. Keeping this count low would add up your CIBIL score. So, to avoid these enquiries, you should restrict yourself from the number of credit card applications you send, loan applications you submit in spite of poor eligibility, check out your credit score before applying for credits.
Use not more than 30 percent of credit
To maintain or increase your low credit score, make sure that you do not burn more than 30 percent of the available credit card limit. So, responsible credit card usage is the ultimate key.
Shutting down old credit accounts is a big no!
Your credit score could dip if you decide to close old credit accounts. Your creditworthiness is also based on for how long your credit account persists. Those with long-term, stable credit account will have very good impression.
Do not volunteer as a guarantor or co-signer
It is better that you avoid becoming a guarantor or co-signer, because when the borrower fails to repay, you will be bound to do so. And when you fail to repay the same, it can easily impact your credit score. Any kind of delay or missed payment would naturally reflect on your credit score.
Closely watch your credit score every month
Check out your present CIBIL score before you decide to improve it. You will be prepared about improving your credit score when you know your score well ahead of time. You can also clear out clerical errors, fraudulent moves and other errors by regularly checking your score.
Online rectification of CIBIL score
For any kind of inaccuracy, duplication of information or others that impacts your CIBIL score, you can raise a dispute e online. If you have obtained your credit report from the hands of CIBIL you can go ahead with the dispute resolution, whereas if you haven’t got your credit score, visit CIBIL site and request for the same by filling a form. The form would demand details including identity documents, especially PAN details.
Upon getting your CIBIL report, check out inaccuracies. When there are errors, you may raise a dispute.
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