Improve Your CIBIL Score
A good CIBIL score will let you in achieving lots of your life goals easily. Whether its that dream house that you’ve been planning and the dream vacation, you happen to be coveting, use of credit can ease the task substantially. A bad CIBIL score in contrast can make usage of credit quite challenging. But there are methods in which you can transform your CIBIL score and achieve your goals.
Some in the ways in places you can enhance your score are
Pay EMIs on time
The cardinal rule of fine credit history is always to maintain your payments on time. This factor plays a vital role in your score as well as any delayed payments adversely affect your score. Make sure that your checking account is funded far ahead of time of the EMI timeline, in order that there are no bounces and unnecessary penalties due to bounces.
Using your credit limit
Use your credit limit on the credit card prudently, because over utilisation or maxing out your debit card month on month could affect your credit score. Also failing your outstanding due amount each month and just making payment on the minimum amount due monthly make a difference your score. For example, should your credit limit on the card is Rs. 50,000 and then make sure your are not spending over 50% with the same ie not in excess of Rs. 25,000 on your own credit card.
Credit Hungry Behavior
Any credit hungry behavior ie looking for too many charge cards or loans inside of a short span of time can impact your score adversely. Plan your credit requirements upfront. If you are planning to obtain a house, just be sure you don’t make application for any other varieties of credit like personal unsecured loan or car loan package in the preceding three months, making sure that getting a blessing for your home loan is a lot easier and smoother as well as your eligibility is higher. Too many enquiries as part of your credit report is a sure way to have your loan application rejected by lenders.
Check your credit score periodically
It is a great practice to check on your credit history periodically. Check for details like loan closure etc are updated correctly. Some banks don’t update the bureau whereby it might show erroneously in your report thereby reflecting on the score. Get issues such as this sorted by raising the matter with the bank and bureau and sorting it immediately. Sometimes, loans and plastic cards which you have never taken might additionally reflect as part of your credit report, in which particular case, it’s always best to highlight the situation to the bureau and acquire it resolved to ensure it doesn’t impact your score negatively.
CIBIL score of 700+ is normally considered sufficient for getting your loan application approved. Follow many of these rules and you will see a positive impact on the score in just a few months.