How to Improve Your CIBIL Score

CIBIL stands for Credit Information Bureau (India) Limited, CIBIL score is a measure of your creditworthiness and is obstinate by how you handle your liability and a good CIBIL score can be a great way to get loans from banks and financial institutions.Your CIBIL score is a 3 digit number that ranges from 300 to 900. Here are some useful ways to rectify it:

Outstanding Credit Card Balance -  If you have a large outstanding balance on your credit card then you make all payments on time. Some people do not pay their total credit card bills every month and only pay the minimum amount due,kipping EMIs and late payment of bills have a negative effect on your CIBIL score.

 

Avoid multiple loan/credit card -  If you assign for too many loans or credit cards, then every time a bank checks his/her credit report or score too many hard inquiries can result in reduction of the score.In order to improve your CIBIL score keep minimum number of credit cards and minimum applications for credits as well.

 

Limit your usage of credit limit-  Credit usage is a very important element that impacts your CIBIL score.To manage a high CIBIL score, try to limit your credit limit at 30% by not using your credit card for all your expenses.

 

Check Your Credit Report- If you consider that you are doing all things right to improve your CIBIL score, do not forget to check your CIBIL score at least once in every 6 months, especially if you are planning to get a home loan or any other any form of finance in the near future. For example, if you have paid off your loan in full and closed the account, it might still be shown as current due to an administrative error. By correcting these errors, you can put an immediate stop to a negative effect on your score.

If you have good CIBIL score you can apply for personal loan and of you do not have good score then you need to follow the rules which are mentioned above and it will be easy to get any kind of loan other than personal loan like home loan, business loan, car loan and many more.