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Tips to improve your CIBIL score

Tips to improve your CIBIL score

A high CIBIL score can assist you in easily accomplishing many of your life objectives. Whether it’s that ideal property you’ve been eyeing or that dream vacation you’ve been yearning for, having access to finance can make the process a lot easier. A low CIBIL score, on the other hand, can make it difficult to obtain credit. However, there are strategies to raise your CIBIL score and attain your objectives.

Some of the ways in which you can improve your CIBIL score are

Ensure that your EMIs are paid on time

Maintaining timely payments is the basic guideline of excellent credit history. This aspect is extremely important to your score, and any late payments have a negative impact. Make sure your bank account is funded long ahead of the EMI due date to avoid bounces and extra penalties.

Taking use of your credit limit

Use your credit card’s credit limit wisely, as overusing or maxing out your credit card month after month can have a negative impact on your credit score. It can also hurt your credit score if you don’t pay your past-due balance every month and only pay the minimal amount required. If your credit limit on your card is Rs. 50,000, for example, make sure you don’t spend more than half of that amount, or Rs. 25,000, on your credit card.

Hungry Behavior deserves credit

Any credit-hungry conduct, such as applying for too many credit cards or loans in a short period of time, can have a negative impact on your credit score. Plan ahead of time for your credit needs. If you plan to buy a house, make sure you haven’t applied for any other types of credit in the previous three months, such as a personal loan or a car loan, so that receiving a home loan approval is faster and smoother, and your eligibility is greater. If you have too many inquiries on your credit report, lenders will almost certainly reject your loan application.

Check your credit report on a regular basis

Checking your credit report on a regular basis is a smart idea. Verify that information such as loan closing and other details have been updated accurately. Some banks fail to update the bureau, causing errors to appear on your record and negatively impacting your score. Raising the matter with the bank and bureau and resolving it as soon as possible can help you avoid problems like this. Loans and credit cards that you have never used may appear on your credit report; in this instance, it is essential to notify the credit bureau and have the matter fixed so that it does not negatively effect your score.

Don’t pay off your credit cards or loans

People frequently choose to pay off a credit card or a loan. This implies they contact the bank and request a settlement that will allow them to settle the debt for a lower sum than the real amount owed. While banks will sometimes accommodate such requests, the settlement will appear on the credit record and will have a negative impact on the credit score as well as a bank’s willingness to extend new credit.

Get a credit card with a variety of options

Secured and unsecured loans are the two types of loans available. If you take out too many unsecured loans, banks will regard it as a red flag and may decline your application. You can take out unsecured loans, such as personal loans, as well as secured loans, such as automobile or home loans. P.S. Unsecured credit includes best credit cards.

A CIBIL score of 700 or higher is usually adequate to get your loan application accepted. If you follow a few of these principles, you should see an improvement in your score within a few months.

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