Is your CIBIL score is low? Looking for how to improve the CIBIL score. Here is good news for you is that now you can easily improve your CIBIL score fast in 5 simple steps and you don’t need to worry about the credit problem.
Having a low CIBIL score can increase the financial problem in feature and make it very difficult for you to approve loan and access credit card. If you already have a good CIBIL score that means you are paying loan EMI and credit card bill payment regularly without any delays and defaults. It will increase the chance of approving higher loan amount at the best interest rate and you will also get the best deals on credit cards.
In the past, if you have ever applied for a loan or credit card and if your application got rejected then the main reason is you have a low credit score.
What is CIBIL Score?
TransUnion CIBIL or Credit Information Bureau (India) Limited was the first credit bureau company in india and it is responsible for generation report related to the Credit Score.
The CIBIL score is a 3 digit mathematical expression ranging from 300 to 900 which represent your credit history. This score is calculated based on your credit report which contains credit history such as payment transactions, credit cards, and loan related information.
What is considered as a Good Credit score?
As mentioned above credit score is ranging between 300 to 900. A credit score between 800 to 900 is considered as good. While a score between 300 to 549 is considered as a poor. If you are in this category then you must need to improve it. Here you can find 5 tactics that will help you to improve your CIBIL score fast.
First, check your credit report and resolve the error if any!
Before continue reading the article you must check CIBIL score and now you are eligible to check free credit score every calendar year online. Check your credit score is accurate or not. In case if you find your score is not accurate especially regarding the delayed payment or load you never ever took and find any error then you need to report and dispute it.
After you raise dispute the bank can take up to 30 days to complete your request. Once your dispute solves successfully you will get an updated credit score after that you will get an idea of how much efforts required to improve it.
Related Article: How to Check Your CIBIL Score Online for Free in just 5 Simple Steps
Always set reminders to repay
Your repayment of load EMI and credit card bill can have a significant impact on your credit score. Delay in EMI payment and credit card bill will lower your credit score and also force you to pay penalty. In case if you forgot to pay a bill on your credit card then ask your bank to reduce the interest rate or waive off the dues as soon as possible.
Avoid joint account holder
If you have any joint account or guarantor of loans then try to exit from it as soon as possible because other parties will also reflect on your credit card report and it will impact on your CIBIL score badly.
Try to get a secured card
If you have a very low credit score then approach your bank to issue a secure card for you. By getting a secured card against a fixed deposit from leading banks such as State Bank of India, Axis Bank, ICICI bank will raise your CIBIL score.
Avoid taking multiple loans and credit card at a time
Did you know that applying for multiple loans and credit card has a negative impact on your score. Before applying for any product always do your research and select based on requirements. Basically taking multiple loans and credit card will raise your credit utilization and it will harm your credit score.
Maintain healthy credit mix
Always looking for a good mix of secured and unsecured credit such as credit cards, auto loan, personal loan, and home loan give you a positive score.
It is always advisable to be patient, disciplined and smart while applying for a loan, credit card and investing money. While all these methods will automatically improve your credit score but it takes up to 4 to 10 months to take effect.