Building Up Your CIBIL and Your Financial Future
By far, the most common thing we are asked here at CreditSmart is HOW to make your score go up. People first need to realize this is never a quick endeavor, as a score a built, it just not just appear out of thin air. Discipline and good decisions are what will make your score go up over time. CIBIL recently detailed some simple tips that will get your score looking good. Here are some strategies directly from Hrishikesh Mehta, VP and head in Transunion CIBIL.
Build A Positive Credit Profile
Start small: Timely payments on a consumer durable or a short-term loan helps build a positive credit footprint—the EMIs are lower in amount and the loan period is shorter, making it easier to repay.
Apply for new credit in moderation: Lenders will be wary of a sudden increase in credit appetite.
Maintain Healthy Credit Footprint
Pay your dues on time: Late payments are viewed negatively by lenders.
Keep your balances low: Control your utilisation.
Maintain a healthy mix of credit: It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards). Too many unsecured loans may be viewed negatively. Monitor your co-signed, guaranteed and joint accounts: You may be surprised to know that you can be held equally liable for others’ negligence (such as missed payments) in co-signed, guaranteed or jointly held accounts. So keep track of loans and other accounts that you may have guaranteed.
Review your credit history frequently throughout the year: Monitor your credit score and report regularly to avoid unpleasant surprises in the form of a rejected loan application. So start tracking your credit profile regularly and working towards a higher credit score to avail of score-based preferential pricing discounts and loan offers when the opportunity arises.
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