Tips to improve your CIBIL score
by Loanadda Com A Professional loan Aggregator IndiaA good CIBIL score can help you in achieving many
of your life goals with ease. Whether it’s that dream house that you have been
planning or the dream vacation, you have been coveting, access to credit can
ease the process substantially. A bad CIBIL score on the other hand can make
access to credit very difficult. But there are ways in which you can improve
your CIBIL score and achieve your goals.
Some of the ways in which you can improve
your score are
Pay EMIs on time
The cardinal rule of good credit history is to
maintain your payments in time. This factor plays a crucial role in your score
and any delayed payments adversely affect your score. Make sure that your bank
account is funded well in advance of the EMI due date, so that there are no
bounces and unnecessary penalties due to the bounces.
Using your credit limit
Use your credit limit on your credit card
prudently, because over utilization or maxing out your credit card month on
month can affect your credit score. Also not paying your outstanding due amount
every month and just paying the minimum amount due monthly can affect your score.
For example, if your credit limit on your card is Rs. 50,000 then make sure
your are not spending more than 50% of the same ie not more than Rs. 25,000 on
your credit card.
Credit Hungry Behavior
Any credit hungry behavior ie applying for too
many credit cards or loans within a short span of time can affect your score
adversely. Plan your credit requirements in advance. If you are planning to buy
a house, make sure that you don’t apply for any other types of credit like
personal loan or car loan in the preceding 3 months, so that getting an
approval for your home loan is easier and smoother and your eligibility is
higher. Too many enquiries in your credit report is a sure way to
get your loan application rejected by lenders.
Check your credit report periodically
It is a good practice to check your credit report
periodically. Check for details like loan closure etc is updated correctly.
Some banks fail to update the bureau in which case it might show erroneously on
your report thereby reflecting on your score. Get issues like this sorted by
raising the issue with the bank and bureau and sorting it out immediately.
Sometimes, loans and credit cards which you have never taken might also
reflect in your credit report, in which case, it is best to highlight the issue
to the bureau and get it resolved so that it doesn’t impact your score
negatively.
CIBIL score of 700+ is usually considered good
enough for getting your loan application approved. Follow some of these rules
and you can see a positive impact on your score within a few months.
If you want to know more about credit score, Personal
loan Home Loan, Business loan etc. Visit www.loanadda.com
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Created on May 4th 2018 04:05. Viewed 854 times.