Smart Actions To Increase Your CIBIL Score Now
UP is the direction you want your score to be going! If you are reading this article, chances are you are worried about your CIBIL score. CreditSmart is here to take your score far North!
CIBIL scores are just like our Board examination report card where the average student ends up wishing that he should have studied a bit more initially. Same is the case with those people whose CIBIL score ranges from 300 to 600. All of them wish to have exercised more wisdom and smartness while using their credit cards and agility while making their credit repayments.
For everyone else who is not yet aware about CIBIL score, let us quickly enlighten you that CIBIL score is that three digit number ranging from 300 to 900 which is emblematic of a person’s credit history & performance. Higher the score, better a person’s credibility. CIBIL score assumes importance if you are applying for a personal loan for property, home, business or even education. Banks always consider your CIBIL score before sanctioning your loan application. So the first conclusion is – you may find your Bank Loan application rejected if your CIBIL score is less than 700!
But That’s OK…
Coming to second conclusion, you can always work to improve your CIBIL scores. There are some ways by which you can increase your CIBIL score from 500 to 750:
• Clean your credit card debts – Credit card payment behavior effects your CIBIL score majorly so start paying your credit card dues before time and in full.
• Use your credit cards judiciously – It is important to be aware about all the credit cards you have and which ones to use when. Even if you are not using any credit card, do not deactivate them. Rather start using them in the segment they give maximum cashback or rewards.
• Pay your EMIs on time – This should be obvious. Be regular in your loan repayments, if taken. Any delay in payment of EMIs or Interest will reflect in your CIBIL score negatively. So instruct your accountant to be regular and timely with EMI/loan repayments.
• Get your credit limit increased – If you are being offered an increase in your credit limit, do not refuse it. Increased credit limit will improve your credit utilization ratio and in turn your CIBIL score will go up.
• Stay aware about your CIBIL score – And finally, to take corrective action, it is important to stay aware about your CIBIL score which you can find out online as well through CreditSmart.
Take all these corrective actions, but do not expect results overnight or a kick in your CIBIL score within days. It might take 3-6 months but your CIBIL scores will increase to the desired number if you adopt good credit repayment approach.
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