CIBIL Score: How to improve CIBIL score, know easy ways
CIBIL Score: It is very important to have a good CIBIL score. If the score is low, it may be difficult to get a loan or credit card from the bank. CIBIL score ranges from 300 to 900. The higher the score, the greater the chances of getting a loan. If your CIBIL score is good, you can easily get a loan and the interest will also be less. But if the score has deteriorated, there is no need to panic. There are many easy ways to improve it, one of which we are describing below.
CIBIL Score: If you want to improve your CIBIL score, try to take a loan for a longer period. This will reduce your EMI and you will be able to pay it on time. By paying EMI on time, your CIBIL score will gradually start improving.
Do not over utilise your credit limit
If you want to improve your CIBIL score, do not over-utilize your credit card limit. Try to spend only 30% or less of your credit limit. This will keep your credit utilization low, which is good for your CIBIL score.
improves your CIBIL score and also helps in getting a loan in the future.
Do not use more than 30% of your credit limit:
If you want to improve your CIBIL score, try not to use more than 30% of your credit card limit. This will make the bank feel that you spend wisely and your credit utilization will also be low, which is good for the score.
Apart from this, do not close your old credit card. Keep using it and pay the monthly bill on time and in full. This creates a good credit record, which helps in improving your CIBIL score and also makes it easier to get a loan in the future.
Avoid taking multiple loans at the same time
If you apply for multiple loans at the same time, your CIBIL score may deteriorate. The bank will think that you are financially weak. Therefore, try to take only one loan at a time and repay the old loan before taking a new loan.
Think before becoming a guarantor
There is a risk in becoming a guarantor for someone's loan. If that person does not repay the loan, it will also affect your CIBIL score. Therefore, become a guarantor only when you have full confidence in that person's financial condition and ability to repay the loan.
Correct the mistake immediately
Keep checking your credit report from time to time. If you see any mistake in it, get it corrected immediately. Correct report and timely correction will keep your CIBIL score good and will give you benefits in future.