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A good CIBIL score can help you achieve many goals in your life with ease. Whether it is the dream home you are planning or the dream vacation you have been longing for, access to credit can ease the process to a great extent. On the other hand, a poor CIBIL score can make accessing credit very difficult. But there are ways by which you can improve your CIBIL score and achieve your goals.
Some Ways You Can Improve Your Score
Pay EMI on time
The main rule of a good credit history is keeping your payments on time. This factor plays an important role in your score and any delayed payment will adversely affect your score. Make sure that the amount is credited to your bank account well before the EMI due date, so that there are no bounces and unnecessary penalties due to bounce.
using your credit limit
Use your credit limit on your credit cards judiciously, as over-utilisation or maxing out your credit card from month to month can affect your credit score. Also, not paying your dues every month and paying the minimum monthly dues can affect your score. For example, if your credit limit on your card is Rs. 50,000 then make sure that you are not spending more than 50% i.e. 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 in a short span of time can adversely affect your score. Plan your credit needs in advance. If you are planning to buy a home, make sure that you have not applied for any other type of loan like personal loan or car loan in the last 3 months, so that getting approval for your home loan is faster and easier. Yes and your eligibility is high. Too many inquiries in your credit report is a sure way to get your loan application rejected by the lenders.
Check your credit report from time to time
It is a good practice to check your credit report from time to time. Check details like loan closure etc. have been updated correctly. Some banks fail to update the bureaus, in which case it may appear incorrectly on your report, affecting your score. Resolve such issues immediately by taking them up with the bank and bureau. Sometimes, loans and credit cards you’ve never had can also appear on your credit report, in which case it’s best to highlight the problem to the bureaus and get it resolved so it doesn’t negatively affect your score. Do not impress
A CIBIL score of 700+ is generally considered good enough to get your loan application approved. Follow a few of these rules and you can see a positive effect on your score in just a few months.
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