Ways On How To Improve CIBIL Score!

Some might be hearing the term CIBIL Score for the first time, but most of them are familiar with the term because of loan and credit card rejections by banks. The other day Mr. Abhijeet approached us in despair. On intervention, we got to know the reason behind his sadness was the rejection of his personal loan due to low CIBIL score. Yes, CIBIL score is that important. People generally neglect the importance of CIBIL score. But it holds prime importance after RBI made it mandatory for all banks to check their credit score during a credit card or loan application process. Before we get into the subject for today, let’s get acquainted with what CIBIL score is and how important it is for you. CIBIL score is like your financial report card which how to Improve CIBIL Score shows a track record all your credit transactions from credit card payments to paying loan EMIs. This score helps the lender (banks) anticipate that whether you’ll be able to pay the debt in time or not. If you’ve a clean credit record, the bank trusts you and grants you the loan. Otherwise, it’s a red flag. CIBIL score is assigned by a credit information agency called TransUnion CIBIL (earlier known as Credit Information Bureau of India). The score ranges from 300-900, where 300 denounces you as bad credit servicer and 900 translates into a good credit score. If you’re lagging behind on or close to 300, there are ways on how to improve CIBIL score. How to get back in the CIBIL Score game easily? 1. Make All the Due Payments - We often end up exhausting our credit limit in a month and then don’t pay our dues on time. This happens due to mismanagement. Set a lower limit than your credit limit for every month. That way you’ll end up spending less and can pay your dues easily. The same applies for loan account also. Check with the bank about your unpaid dues and pay it off as soon as possible for a better CIBIL reflection. 2. EMI payment on time: This is one of the way that organically boosts your CIBIL score. All it takes is to be committed to get over the loan or credit card dues as soon as possible. Never bite more than you chew. Know your limit and spend accordingly so that you won’t face any difficulty in paying your monthly installments. 3. Dispute Settlement: CIBIL prepares the credit score report on the basis of the information collected from Member Banks. There can be a scope for errors cause humans are involved in the data entry process. If you find any transaction that you’re not sure about, you can raise a dispute on CIBIL’s website. By doing this, the damage done on your CIBIL website can be easily rectified.

4. Increased Credit Limit: Ask your credit card bank to give you a higher credit limit. This does not mean that you can spend more. This is just to show CIBIL that you’ve kept your credit utilisation ratio low by spending less and servicing your debt at time. Seeing this, CIBIL restores confidence in you and increases your CIBIL score. These were some of the hacks on how to improve CIBIL score. With a more disciplined approach towards spending, you can increase your CIBIL score without any difficulty.