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7 Simple Steps to Improve your CIBIL Score

7 Simple Steps to Improve your CIBIL Score

A comprehensive report based on a person’s credit score is provided by CIBIL, one of India’s four authorised credit agencies. When applying for any kind of credit, it is essential to have a high CIBIL score because it measures a person’s creditworthiness. 

Continue reading to know how to raise your credit score and take advantage of a quick loan approval process.

How can you improve your CIBIL score?

Anybody looking for simple instructions on “how to raise CIBIL score within a short time” can follow these guidelines:

  • Making timely EMI and credit card bill payments

When EMIs and credit card bills are paid on time the credit score increases. By using a systematic approach, such as selecting an eNACH mandate and posting payment reminders, one can avoid missing payments. 

  • Pointing out mistakes in the credit report

Consistently check the credit report to see if there are errors before that you should also know how to check the CIBIL report. The CIBIL score can also be negatively impacted by incorrect balance inputs and past-due loan repayments. To improve your credit score, get a free CIBIL score check and report the credit bureaus of these errors.

  • Selecting various credit options

Those who have never utilised credit are persons with no credit history and low credit scores. A healthy mix of secured and unsecured credit can help you improve your credit score. To ensure a higher credit score, submit applications for both long- and short-term loans. This strategy guarantees quick loan approvals, lower interest rates, and credit score improvement.

  • Lowering credit utilisation

One of the best strategies to raise credit scores is to use credit responsibly. One ought to keep the credit utilisation ratio around 30% in order to raise and maintain good CIBIL score. Financial firms view a person as credit-hungry if they use a large portion of their permitted credit limit. The CIBIL score drastically declines in such circumstances.

  • Raising the credit limits

Lowering the credit usage ratio and improving credit scores are both achieved by raising the credit limit. So, before incurring additional costs, a person should make sure to raise their credit limit. They will be able to better manage their funds as a result, which will greatly improve their CIBIL score.

  • Avoiding multiple loan enquiries

Any candidate should refrain from making several hard inquiries quickly. Lenders see applicants who make an excessive number of queries as credit seekers. The same is recorded on the credit report, which drastically decreases the ratings.

Whenever an application is turned down for whatever reason, one should wait a set amount of time before choosing a new credit. A person who follows this advice can keep their CIBIL score steady.

  • Monitor financial activity of the joint applicant

A person must be sure to monitor the other applicant’s financial actions if they have a joint account for a loan. Improper and bad spending habits of the joint accountholder will affect the other person’s credit score negatively. Only by avoiding applying for a joint loan until and unless it becomes necessary can one avoid this situation from occurring.

How to check CIBIL score for free?

You can follow these simple steps in order to check your credit score for free:

Step 1: Visit the official website of TransUnion CIBIL and register yourself. 

Step 2: Next up, fill up the form properly with all the details, such as name, address, PAN number, etc. 

Step 3: Finally, click on the “Submit” button and you will be able to see the three-digit CIBIL score on your screen. 

Candidates with a decent CIBIL score can be eligible for several pre-approved offers. These offers are applicable on loan against property, home loans, etc. Individuals can extend their pre-approved offers by entering a few details on the lender’s website. 

You will be able to receive quick loan approvals if you have a good to excellent CIBIL score. Financial organisations also provide a number of lucrative benefits, such as low interest rates, longer repayment tenors, etc., to applicants with a decent CIBIL score.