CIBIL Score: Due to poor CIBIL score, you are not getting loan from the bank, you can fix it with these 5 ways..

Credit Score: It is very important to have a good credit score as it shows your financial credibility. Having a poor credit score can make it difficult to get a loan or credit card from a bank. This score ranges from 300 to 900, and a strong score helps in getting a loan easily at a low interest rate. If your credit score has deteriorated, do not worry, it can be improved. Let's know how.

Take a loan for a long period-

If you want to improve your credit score, then choose the option of repaying the loan for a long period. This will reduce the EMI, and you will be able to pay on time. Your credit score will improve when you do not pay, postpone, or default on EMI.

Do not use more than 30% of the credit limit-

When using a credit card, avoid using more than 30% of your credit limit. This will help improve your credit score. Additionally, continue using your old credit card as long as you can pay the full amount on time. This helps build a strong and long-term credit history, which will improve your credit score in the future.

Avoid taking multiple loans at once-

Applying for multiple loans in a short period can lower your credit score as banks may consider it a sign of financial instability. One should take as few loans as possible in a given time frame and repay one loan before taking another.

Avoid becoming a guarantor-

Becoming a guarantor carries some risk as your credit score will be affected if the primary borrower defaults. You should accept such an arrangement only if you are confident of the borrower's ability to repay and their financial stability.

Correct the mistake-

Get a credit report and check it. If you find any mistake, get it corrected. Review your credit report from time to time.

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