CIBIL Score: No tension of bad CIBIL score, these 5 ways will increase your CIBIL rapidly..
Cibil Score: In today's inflation, loans or credit cards have become our need. Be it personal, home or car loan, or credit card, a good CIBIL score (credit score) is necessary for these. The higher the score, the better your financial condition. But often we make such mistakes due to which this score falls.
Here we will also tell you about the reasons due to which your credit score can be bad. Along with this, we have brought some easy tips for you with the help of which you can easily improve your credit score. Let's know about ...
Why is it important to keep a good credit score?
Your CIBIL score is between 300 to 900, which is based on 24 months of credit history. A score of 550 to 700 is considered good, while a score of 700 to 900 is very good. If your CIBIL score is 750 or more, then you get a loan or credit card easily. In simple words, the better your CIBIL score, the easier it is for the bank to give you a loan or credit card.
The CIBIL score deteriorates due to these reasons-
- If you take a loan and do not repay it on time, your credit score may fall.
- Your credit score deteriorates if you do not pay the credit card bill on time.
- Your credit score also deteriorates if you do not maintain the minimum balance in your bank account.
- When you apply for many new loans in a short period, it can reduce your CIBIL score.
Having a poor credit score can harm you in many ways. You may face difficulty in getting loans and credit cards, and even if you get them, the interest rates on them will be very high. This will make it difficult to take a loan to buy big things like a house or a car. Not only this, you may also be denied a loan or credit card. Keeping your credit score good is very important to get financial facilities in the future.
How can you improve your credit score?
Here we are going to tell you some easy ways. With these easy tips, you can improve your credit score and strengthen your financial position. However, remember that the credit score does not change overnight. It may take some time for you to see improvement in your score.
Pay the loan on time-
This is the easiest way to improve your credit score. Pay your credit card bill, loan and all other loans on time. Even a slight delay can affect your score. So without being careless, pay the loan EMI or credit card bill on time. The better your loan payment record, the better your credit score will be.
Apply for a new loan thoughtfully-
When you apply for a new loan, your credit report is checked every time. This can reduce your score slightly. Therefore, avoid applying for different loans in a short time.
Check your credit report-
Check your credit report every year to ensure that there are no errors in your credit report. If you find any discrepancy, get it corrected immediately.
Keep your credit usage rate low-
The amount you are using compared to the total credit limit available with your bank is the credit usage rate. Use less than 30 percent of your credit limit. For example, if your credit limit is Rs 10,000, you should not keep an outstanding amount of more than Rs 3,000.
Do not close old credit cards-
Your credit history directly affects your CIBIL score. A good loan history is important for building a better CIBIL score. The older your credit history, the better your CIBIL score. So, if you have an old credit card account that you do not use, do not close it; it helps in keeping your score better.
You can check your credit score for free (CIBIL Score for free)-
Mobile wallet app Paytm has now started the facility of checking CIBIL score. Through this, users can see their complete credit report, which will also include information about active credit cards and loan accounts.
Disclaimer: This content has been sourced and edited from Hr Breaking. 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.
