CIBIL Score Tips: Will the CIBIL score be corrected in a month, loan takers must know this..
Improve CIBIL Score: A good credit score is very important. A good credit score helps you in getting a loan but it is difficult to improve a low credit score in a month but you can increase the credit score with the help of some tips.
This credit score is good-
Credit score is fixed between 300 to 900 and if your credit score is between 550 to 750 then the score is considered good.
Whereas, if it is 750 or more then it is considered very good. Scores between 300 and 550 are considered bad. Your credit score depends on many things.
30% of the CIBIL score depends on whether you are repaying the loan on time or not, 25% on secured or unsecured loans, 25% on credit exposure, and 20% on loan utilization.
Pay EMI on time-
Make all your bill payments on time, no matter what the EMI. This includes credit card bills, loan EMIs, utility bills, etc.
Late or missed payments can hurt your score.
If you want to improve your credit score, then you should not take a new loan because even if you are not able to repay the loan, your credit score will get spoiled. Therefore, you should avoid applying for loans again and again to increase your credit score.
Reduce the use of credit limit-
If you want to increase your credit score, you must use minimum credit limit. Using only 30 percent of the credit limit is considered ideal.
If you exceed your credit limit, it can also reduce your credit score. You must make payment before the end of the billing cycle.
Apart from this, you should also think carefully before becoming a loan guarantor because if the person taking the loan for whom you have become a loan guarantor does not repay the loan or does not pay the installments on time, then it can damage the credit score.
If your repayment history is good then you can request to increase the credit limit. This can help improve your credit utilization ratio.
While these steps may not significantly increase your credit score within a month, they can help you establish good credit habits that will improve your score faster than it would otherwise take.
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