What Are The Steps To Improve CIBIL Rating?
CIBIL™ is one of India's four authorized credit bureaus with a credit score, with Equifax, Experian and CRIF High Mark.
You can boost your credit score in a variety of ways. It will take 4-12 months to increase your score to apply for your loan, depending on how well or poor your score is. Some items to increase your score are presented here:
Obtain your credit report immediately: You will notice errors that unnecessarily drag down your score when you read your score. For example, even though your loan has been completely paid with interest, a reporting or administrative mistake may be seen to remain unpaid. You will file a dispute for correction if any defects occur in your credit report. This will raise your score instantly.
Similarly, there might be cases of fraud that don't cause you to lose score. For example, you might find that you have not taken a loan on your behalf. Any case of suspicious behaviour must be reported and resolved immediately. This also affects your score instantly.
Make sure you pay your bills on time: This is the one thing you can do to increase your score. It will have an important positive influence on your ranking if all credit card and loan repayments are made on time and in full. Even a single late payment will negatively impact the payout. Your payment record accounts for up to one third of your credit score, so you can easily increase your score if you make all payment on time. So you can quickly make your payments to see how your score changed.
Ensure that you keep your expenditure restricted to 50% of your card: don't always surpass your credit card limite by more than 50 percent. For example, you can reduce monthly expenditure to Rs. 50000 or less when your cap is Rs 1 lakh a month. This will affect your credit rating positively. If you spend more than 50% of your limits constantly, it means that there is a lack of control which can have a negative effect.
Do not apply for multiple loans or credit cards at the same time. In a short term, it means that you are starving for credit and must apply to different outlets simultaneously for several lenders for loans or credit cards. Lenders are nervous about your ability to repay and will deny your application. Your score is further diminished with any denial.
All these items can be done on your own to boost your credit score. Credithelpindia will instruct you on how to increase your score easily and efficiently if you have insufficient time or expertise to do so on your own.