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I Need To Increase My CIBIL Score To Apply For A Home Loan

How To Decide Which Bank Is Giving The Best Home Loan Deal

Time And Consistency Raises CIBIL

A few days ago we received a letter from a reader as follows:

On Dec 7, 2017, at 8:17 AM
Message Body:
My credit score is very low because I had 3 credit cards and they were overdue. Now, I have completely closed one card and settled the other two credit cards, however, my credit score is too low. Could you please suggest any way to increase my credit score and get more loans as I am planning to get a home loan within next 2 years.


Banks and CIBIL Value Consistency Above All


Thanks for your email. We offer the same advice we offer many people in this situation, and that is to use your existing credit card and begin making regular purchases —and most importantly— pay in full each billing cycle. We often encourage people to pay multiple times per month as well. The idea here is to always keep your balance 0 and never accrue any interest. At the same time, the credit card issuer sees you are a responsible borrower who is frequently paying off the balance due. This shows financial responsibility  and over time, is the number one factor that will increase your CIBIL Score back to it’s heights. 
Do not charge more than you can pay, just use it for day to day expenses and pay in full. This strategy is slow, but if you follow it for 2 years you should have a great score by the time you are ready to get a home loan. 
Best of Luck,
CreditSmart Staff CreditSmart

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