Improve Your CIBIL Score

Clearing Outstanding Loans Does Not Improve Your CIBIL Instantly

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Reader Rao sent us in a question about his recently cleared dues.


Message Body:
I have cleared all the outstanding dues of my credit card this MAY 2017. Even then when i go to purchase electronic items on EMI I am refused to get the EMI loan. What can be done ?


Hello Rao,

Thanks for your email. Even though you have cleared all your outstanding dues just now, it does not mean a lender will view you as a reliable borrower. You need to establish a months or years long pattern of on time payments to build up a strong CIBIL score and positive credit history.
Additionally, since you have just paid this off in May 2017, the payment has probably not been reflected in your current CIBIL report yet. I would advise going to directly and getting your once yearly free credit report.
With this, you can see what problems might be on your report, and work to fix them. The best advice is to charge small amounts on your credit card each month and pay off in full so that you can establish a positive repayment history. Then this will raise your CIBIL Score, and you will be much more likely to receive loan approvals.
Best Of Luck!,
CreditSmart Staff
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