Boost Creditworthiness: Tips to Improve Your CIBIL Credit Score

Late payments affects your credit score:

This may one of the major reason for bad score. So always makes sure to pay your EMI or credit balance in time. Few neglect it and afterward try to bargain with credit providers. Once they settled for the amount which was lesser than total due, they feel happy that they saved something. But in reality it is really affecting their credit score.

CIBIL has been authorized via the RBI (Reserve bank of India) and is governed via the credit score facts groups (law) Act, 2005.

Keeping alerts in your mobile, Google Calender or through any other means can really makes your life easier and pay within time. Also make sure that you drop the cheque before 4-5 days earlier than actual due date. Because cheque collection from bank and credit of amount to actual card provider may take time, which in return will be considered as late payment. Hence better to pay in advance if you are planning to pay through cheque.

Credit Score Mix:

Avoid being overly dependent on any one credit kind, such as a large number of credit cards or unsecured loans. Rather, always maintain all forms of credit, such as credit, personal, cars or house loans. Increasing one's exposure to unsecured loans, like credit cards or personal loans, might create the impression that one has a bad credit history. Instead of leaning too far toward the unsecured, always use a combination of secured and unsecured.

Apply for credit with pause

Uninterrupted credit applications may actually considered as “CREDIT HUNGRY”. Instead always apply if you are actual need. If you do so then it shows that your current finance are at mess and you are desperate to get credit at any means whether it is from personal loan, car loan or utilizing the credit card. So this may harm your credit score and may be the reason for rejecting your loan application. Hence be caution while inquiring or applying for new credit.

Before canceling credit cards, think twice; it will impact your credit score.

Having too many credit cards or using them all at once is typically regarded as poor financial practice. However, an unused credit card also suggests a stable financial situation. Thus, before canceling any credit cards that aren't being used, give it some thought. Closing a card that has a balance due could also be seen negatively. Therefore, pay off your debt before closing any unused cards.

Check co-signed or Joint Accounts credit score-

If you became the guarantor to your friend’s loan or having account with second or third holder of that credit then make sure all credit dues will be paying in time. Even though in plain it seems that you no longer a first holder or the loan applicant, bust till you being guarantor or joint account holder will actually be makes you equal responsible. So check regularly where you are as a guarantor or joint account holder of any loan accounts. Otherwise, it may impact your own credit score.

Pay all credit score dues:

Make it a point to pay all of your dues. Typically, credit card companies send you a bill that indicates the minimum payment amount you can make. However, the outstanding balance is regarded as past due, which will further lower your CIBIL score. So always make an effort to pay off your credit card debt in full.

Get Professional Assistance on Maintaining a Good Credit Score

In the event that you have damaged your credit, you should see a financial planner or another person you believe to be knowledgeable in the industry. You could occasionally get an idea from revealing your difficult financial situation that you had never considered. Thus, never withhold anything negative about your credit history and always disclose it. Who knows, perhaps your idle money, asset, or investment could force you to get into debt.

If you've got property papers that don't have any record of disputes associated with the land or home, you stand a better chance of being eligible for a home equity credit for the same home/property

By following above rules it does not guarantee or improve your score overnight. Instead following the above rules throughout your financial life will actually improve your CIBIL score in long run and makes you a responsible person.

Hence do follow above simple steps and maintain a good credit score to get your loans and credit approved fast!