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Having a Low CIBIL? Here are Tips to Improve It

by Soft2share.com

According to a survey conducted by the globally recognised credit bureau Transunion CIBIL, around 74% of the individuals surveyed responded that they check their CIBIL score twice a year at the least. 29% of these individuals also stated that the primary reason to check is to see improvements in credit score. Implementing different financial habits can help you improve your CIBIL score. Therefore, you should first be aware of the dos and don’ts so that financial mistakes can be avoided. Following the below-mentioned tips will help boost your credit score.

Tips to improve your credit score

  • Pay bills and EMIs in time

Making sure to pay the loan EMIs and credit card bills in time will improve your credit score. This increases your creditworthiness and hence affects your credit score positively.

  • Avail unsecured loans like a personal loan and repay in time

Those who don’t have a credit history will have a 0 or 1 credit score, which means that there is no credit history found for that individual. Such individuals can seek a personal loan and make repayments within time to improve their credit score. Credit bureaus consider repayment habits of an individual to calculate the credit score.

  • Maintain a credit utilisation ratio

The credit utilisation ratio is the ratio between the amount utilised by the borrower from the total amount sanctioned. Exhausting the credit limit isn’t a wise financial habit and may have negative impacts on your credit score.

  • Ensure to avail a loan only after considering the repayment option

You should first check the repayment options like the estimated monthly instalments (EMIs) for a particular loan, tenor, and applied rate of interest. Make sure your financial obligations for a month is streamlined with the newly opted loan and doesn’t put you in a situation of financial strain. It should be noted that it is considerably difficult to apply for a personal loan for CIBIL defaulter. Hence, borrowers must ensure to avail a loan they can comfortably repay and improve their credit score.

  • Apply for secured as well as unsecured loans

Credit bureaus also take into account the type of loans you have availed. Hence, borrowers should have a mix of secured and unsecured loans. Repaying a mix of credits has a considerable impact on your credit score. Availing an instant loan for CIBIL defaulters is near impossible, and hence you must ensure not be labelled as a delinquent borrower.

  • Pay credit card bills in full

Paying credit card bills in full can have a significant impact on your CIBIL score. Often times, customers don’t pay the entire bill amount within the grace period as provided by the financial company. Not making full payments for your credit card bills can have a negative impact on your CIBIL score. Therefore, make sure to pay the total bill amount within the due date. 

As per reports, a 30 days delinquency is capable of reducing the CIBIL score by 100 points. Hence, making full and timely bill payments every month can help you acquire a decent CIBIL score. Keeping these tips in mind while making a financial decision about loans and other forms of credit will make sure that you don’t commit a mistake which can hamper your credit score adversely. Improving credit score will be highly beneficial as you don’t have to think of availing a personal loan with a bad credit score.

You can easily reach a reputed financial institution and have your loan application approved. Further, non-banking financial companies like Bajaj Finserv simplifies the loan application procedure for their existing customers with pre-approved offers on loan. These offers are available on several financial products such as home loans, business loans, personal loans, along with others. You can check your pre-approved offer in seconds by submitting your name and contact number. Low credit scores can create challenges for individuals who are willing to apply for loans. Hence, improve your CIBIL score by adhering to these pointers and avail unsecured credits like personal loans feasibly.

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