The Ultimate Guide to Improve Your Cibil Score

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The Ultimate Guide to Improve Your Cibil Score

Praveen Sharma
Wednesday, January 23, 2019

Your Cibil loan is based on your CIBIL report, which is a summary of your credit history. While a score of at least 750 helps you get a loan on favorable terms, you can easily remedy a score that is not ideal. Simply concentrate on understanding the factors that affect your credit score and consult Cibil score improvement agency. If you stay on it, you can easily improve your CIBIL score over time. Take a look at the 7 tactics that will help you improve your CIBIL score.

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1. Set up payment reminders and be disciplined with credit

Your payment of outstanding debt can have a significant impact on your credit score. That's why you need to maintain discipline when it comes to paying EMI. Delays in EMI payments not only force you to pay a fine but also reduce your credit score. So, if you find that this is something that you are guilty of, be sure to set up reminders for EMI payments so you can address them on time.

2. Make sure to keep old credit cards to extend credit history

If you have old credit cards, you must continue to hold them while you can pay your bills in full, on time. This will help you build a solid and long credit history, which in turn will help you increase Cibil score.

3. Customize your credit limit

Your credit utilization rate has a significant impact on your credit score. The more you can restrict your use of credit according to the assigned limit, the better it will be for your credit score. Reaching the limit has the opposite effect since it reduces your credit score. One way to address this is to contact your lender and know about how to increase my Cibil score based on your expenses.

4. Opt for a longer term when you take a loan

When requesting a loan, try to choose a longer term for the refund. This will ensure that your EMI is low and, therefore, you can make payments on time. When you do not default, delay or skip the EMI payment, your credit score will improve.

5. Avoid taking too many debts at once

The number of loans you take in a fixed period of time must be minimal. Pay a loan and then take another one to prevent your credit score from falling. If you take several loans at once, you will show that you are in a relentless cycle in which you do not have sufficient funds. As a result, your credit score will fall further. On the other hand, if you take a loan and pay it successfully, it will give your credit score a boost.

6. Check your CIBIL report for errors and rectify

In certain cases, CIBIL can make mistakes when updating your records, recording incorrect information in your report or delaying the details of the recording. This will also lower your score. Therefore, be sure to check your CIBIL report from time to time. This will help you identify any errors and improve credit score by sending a CIBIL Dispute Resolution Form online. As a result, you will know how to improve Cibil score.

7. Create your credit history by choosing different forms of credit

If you have not borrowed funds in the past, you will not have a credit history and, as a result, your CIBIL score will be low. Therefore, be sure to borrow a healthy combination of credits, both insurance and non-insurance, from a long and short-term to build a solid credit score. This will help you access low-interest rates and higher loan amounts in the future whenever you choose to apply for a loan.

These are some habits that you can incorporate into your life to improve your credit score over time. However, it is important to keep in mind that these steps will not lead to an immediate change in your score. Once you have implemented them, your credit rating will take between 6 months and a year to improve.

There are many companies who offer pre-approved offers on all its financial products, such as commercial loans, mortgage loans, personal loans, etc. You can verify your pre-approved offer by simply adding some basic details.

1. Make all payments on time: The most important point for a healthy score of CIBIL. It is better to opt for the facilities of ECS for the payment of the EMI of mortgage loans, the invoices of the credit cards, etc. on time. All payments must be made at least 5 business days before the due date. If you are making the payment by check, it is best to leave the check 10 days before the due date, since the settlement of the check takes time. While we pay by check, we tend to ignore the holidays that fall between the due date and the date we remove the check. In 89% of cases, the customer disputes that I left the check before the due date and even the charges imposed for the late payment. Keep in mind that banks consider that the payment date is not the check delivery date. I give the following example to my reader.

Let's assume that your salary is due on the 5th of each month and your employer's surrender checks on the 5th afternoon, that is, on Friday. Saturday and Monday is a holiday. Your check will be cleared only on the 11th of that month. From the employer's perspective, he gave the salary on the 5th, but from his perspective, he received only the 11th. It is critical to making all payments on time to improve the CIBIL score.

2. Do not show credit Hungry Behavior? Let’s take an example a person who got a job in the call center. After opening the salary account, he received a call from 6-7 banks to get a credit card and used 5 cards of credit. It shows a hungry credit behavior. He applied for a mortgage loan with her husband. The mortgage loan was rejected due to the low score of CIBIL. Five credit cards show a credit-hungry behavior and, secondly, he did not meet the due date of the payment many times because he used to forget the due date of some credit cards. Hence it is suggested to use maximum 2-3 credit cards. Also, do not keep changing your credit card from time to time. Please remember that old credit cards with regular payment records help you improve the CIBIL rating instead of the new credit cards.

So, to get any kind of it is must that you maintain your credit score.


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