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Closing Liabilities and Raising Your CIBIL Score

The Journey To A 650 CIBIL Score

Dear Sir,

I am 50 years old, and I have closed many liabilities, and yet my score is hovering either 540 or 580.

I am sure that my score needs to be around 650 atleast.

My score is 300 for many months. I wish to avail of a loan, but I believe
that with a few corrections, perhaps I could move ahead.
**Currently, I am closing Icici credit card ending ****. With the last installment payable on June 25th. I would be done.
Please advise/ suggest as to who could help me to set right.​
​Thanks and regards,
Mohan *********

Hello Mohan,

Thanks so much for your email, it seems you are getting back on track by covering all your liabilities. It’s important to remember that simply eliminating your debt is not a recipe for making your CIBIL score jump 100 points, the most important thing we always tell our readers is: Consistency. You mention that you are closing an ICICI credit card on June 25th, I would highly advise you to keep the card if possible. The absolute best thing you can do to rebuild your credit is to establish a positive repayment history. Simply using the card for small purchases and paying in full each month will give you positive repayment data for ICICI to report to CIBIL.
After a period of 3-6 months you will see a steady uptick in your CIBIL score as long as there are no other finance issues. Lenders look at more than just a score, they like to see signs of reliability, and that is exactly what you can show them by paying a small balance off in full each month. Choose a recurring monthly expense and always pay it with your card, and perhaps earn some credit card points in the process.
Raising your CIBIL score is not an instant fix, but is certain if you stick to a pattern. Best of luck Mohan.
Best of Luck,
CreditSmart Staff CreditSmart

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