CIBIL Score: Can your CIBIL score increase by 200 points in just 30 days? Know the answer in just 5 points..
CIBIL Score: If your credit score is low, then first of all, it is important to understand how long it will take to improve it. Improving the credit score is a practical financial goal. If you are thinking of buying a house or a car, or want to get a new credit card, then it is very important to have a good credit score, only then will you easily get a loan at a cheap interest rate.
If you check your credit score regularly, then you must have noticed that it keeps changing frequently. It is normal to go up and down a few points month after month, but it takes time to make a big improvement. If you are thinking that 200 points will increase in just 30 days, then this cannot be guaranteed. If anyone gives such a guarantee, then it will not be right to trust it.
According to CRED, a fintech startup that provides the facility of managing credit cards, you can gradually increase your credit score by 200 points by taking the right steps, but this will not happen in 30 days. For this, you have to identify the mistakes that are lowering the score and then create good financial habits. This is possible only when you adopt good financial discipline over time. Let's know what 5 things you have to do for this.
1. Making payments on time
It is most important to pay credit card and loan installments on time. This is proof of your trustworthiness and improves the score rapidly. If you ignore any payment and the account goes into collections, then the score will be badly affected.
2. Do not apply for loans or cards repeatedly
If you apply for new cards and loans at short intervals, it will harm your score. Lenders will feel that you are taking on more debt and may have difficulty repaying it.
3. Keep the credit use limit low
Always try to use 30% or less of your credit limit. For example, if your limit is 1 lakh, then do not spend more than 30 thousand. Reducing the balance can increase the score rapidly.
4. Report errors in the credit report
Sometimes, wrong entries appear in your credit report, such as an account that does not belong to you or the payment has not been reported correctly. Dispute it immediately. Such errors pull down the score.
5. Do not close old accounts
If you have old credit cards, do not close them, even if you do not use them. Old accounts show a longer credit history, and this strengthens the score. Yes, if there is an annual charge on that card, then it would be better to close it to avoid it.
Points to keep in mind
The easiest way to improve the score is to reduce your debt. Make payments on time, do not spend more than the limit and do not apply for more loans or cards than necessary. If you have late payments or accounts that have gone to collections, correct them immediately. Apart from this, keep checking the credit report from time to time so that any mistake can be caught.
Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
