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5 Ways How To Stay Off The CIBIL Defaulters In 2018

5 Ways How To Stay Off The CIBIL Defaulters In 2018

Be Credit Smart in 2018: Stay Off The Defaulters List

Whenever you apply for a home loan or personal loan, your credit score is given the utmost importance.  It is a factor based on which money lenders judge your ability to repay the loan. As credit score plays a crucial role in procuring a loan, it is important for you to stay off the CIBIL defaulters list.

People get rejected for a loan or credit card because their credit score is less. If the thought of you being put on the list of CIBIL defaulters is troubling you because you have a low credit score, then here are a few things that you are required to do.

1. Do a thorough examination of your credit report

You can solve this problem only when you are able to understand it. Your credit score can be improved only when you have the knowledge of how things went wrong. It is not necessary that only you are responsible for a poor credit score. Human errors can also be one of the possible reasons. Therefore, you must examine your credit report carefully.

2. Settle your dues

Delay in making the repayment of loan can be one of the main reasons why you have a bad credit score. Remarks such as ‘written off’ on credit report are like a warning to the money lenders as they depict that the borrower cannot meet his or her debt obligations. This is the only reason why lenders reject CIBIL defaulters.

If you want a good credit report, then you need to pay off your loans as quickly as possible. If there are any financial limitations, then you can talk about it with your lenders so that they can give you a solution to deal with this problem. Once you pay all your unpaid bills, your credit reports after a period of 3 months will reflect an improved status.

3. Pay your dues on time

To remove your default entry, you are required to make timely payments and give an assurance to the money lender that you will make future payments on time. Delay in making payments can adversely affect your credit score. If you are not able to make timely repayments, then you need to use the auto debit feature in your bank A/C or set alerts for payments on your mobile phone in order to ensure that you can make payments on a regular basis.

4. Spend your money wisely

Whenever you make a payment using your credit card, ensure that it is made within the limit that has been approved. If you spend money beyond that limit, then you are giving an indication to the money lenders that you have insolvency issues.

5) Take one loan at a time

You should never take multiple loans simultaneously as it indicates that you are in an urgent need of money. You should not even take loans in short time periods as it can adversely affect your creditworthiness. Therefore, it is advisable for you to take one loan at a time. If you do so, not only you will be able to manage your payments easily, but also it will increase your chances of loan approval.

So, these are the various ways through which you can improve your credit score.  This will keep you off the list of CIBIL defaulters. If you are able to make payments on time, spend your money wisely, settle your dues, and take one loan at a time. All these things can help you in improving your credit score. A good credit score will get you loans and maintain your creditworthiness as well.

Jay Kaul

About Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He’s always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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