Stop The Tears, And Go From So Low To OH WOW!
A CIBIL score is like that grade we proudly flaunted in childhood reflecting our seriousness in studies! But…what if there is nothing to flaunt about in your CIBIL score? Well, CIBIL score generally ranges between 300 to 900 and people who have less than 600 on their CIBIL report have no reasons to flaunt it. Especially when this score tells your creditors, your banks and credit card companies how not so good your credit repayment schedule has been in the past! Not to forget that this CIBIL score is considered by banks and borrowers before granting you loan, even if the purpose is divine. Does that mean all is lost for low CIBIL scorers?
The good NEWS is no! You have still many more reasons and ways to bring up your CIBIL score. But the only condition is you need to be patient about it as CIBIL scores would not change overnight. We give you 4 reasons why you should not fear a potentially bad CIBIL report along with tips to improve your CIBIL score –
- Being a good debtor is easy – The best habit is to pay your debts on time. CIBIL score will improve gradually when you start making all your credit payments well in advance. This specially includes your credit card bills. The tip is to set an ALARM on your phone or a monthly reminder for all your due dates. Make sure you keep a 3-day margin; no point paying your dues right on the last date!
- Use wisdom in Credit Card management – Realize that it makes no sense taking credit cards without understanding their pros and cons or cancelling a few hastily. Rather, cancelling a credit card should be avoided at all costs if you are already in the low CIBIL score bracket. This would further bring down your credit availability amount which is not good for people having low CIBIL scores.
- It is easy to maintain a balance between different types of credit – Do not rely heavily on credit cards; nor go full-on for the loan. Wisdom lies in understanding and maintaining a healthy mix of credit from various sources.
- You can control your shopping/spending urge – Credit problem is indispensable for people who love to spend and shop without limits. This can be hazardous for your financial health even if you are a millionaire. Exercising control is the best way to be a smart spender. You may benefit if you try to search for some deals rather than going for instant gratification whenever you see an attractive thing. The tip is to SAVE more than you spend. There will never be a financial crisis if you follow this tip!
So for everyone who is struggling with low CIBIL scores, some last words of motivation – Everyone works for money; the smart ones know how to make money work for them! So, be credit smart and do not ignore your money and credit matters.