How to Improve My CIBIL Score ?

Bad Credit Score is very scary these days. With the mistakes committed knowingly or unknowingly, many people tend to get bad reputations. Even, some of the bad credits are the results of the poor credit behavior and mis-management of credit officers. In fact, everyone wants to improve their CIBIL Ratings and get out of their bad reputation. The good credit is always helpful for future loan approval. However, one must remember that there is no scientific process to improve CIBIL Score. However, here are some tips to the better understanding of what makes a great credit report and a good credit score. Along with the tips, there are some of the tips for the ways to move your CIBIL Score upwards.

Stop applying for fresh credit

Always remember that as soon as your CIBIL Score goes low, stop applying for the new loans.Remember that the more inquiries a lender puts in to CIBIL about your score, the lower your reputation goes. Thus, it is always beneficial to hold off for some time or obtain your credit score yourself.

Use credit wisely

Never use your all credits. Always try to use your 75% of the approved credit limit on your credit cards. Even, keep in remembrance, that not using credit at all also negatively impact your reputation and thus, try to use credit in a controlled manner. Keep in mind that the credit history is essential for the building of a positive score.

Improve payment patterns on existing debt

Make timely payments on current debt in order to improve payment patterns on existing debt. Always ensure that the outstanding dues are paid off in full.

Consolidate debt

In case, you have multiple debts, try consolidating all debts into one. Always keep in mind that the managing of different debts is quite difficult and thus by consolidating and paying off many debts through one consolidation loan, it becomes easier to track of all payments and at the same time reducing any chance of a missed payment.

Check for discrepancies in your credit report

Sometimes, a member bank or financial institution sends across incorrect information to CIBIL, thus always ensure that all data on positive and timely payments are recorded and submitted by your bank to CIBIL.

Balance out your debt portfolio

Unsecured loans are the ones, which can highly affect your CIBIL Score, Thus, in case, if you have any unsecured loans try to clear as soon as possible. Try to have secured loans. Secured loans impact your score more positively and thus prefer secured loans over unsecured loans.

Check your score regularly

Always keep a check on where your CIBIL Score stand and how much your score has increased. Try to obtain your credit report at least 2 or 3 times a year.

Increasing your CIBIL score is not an easy task, which can be done in a few matter of time. It is necessary to remember that you will need to be patient. Getting to the CIBIL Credit Score of at least 750 can involve high efforts for some couple of years.

Mortgage September 4th, 2015


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