How can I improve CIBIL Score?
You should be maintaining a good payment history to improve your CIBIL Score. A good credit history helps in getting faster approval and disbursal of personal loans. A high CIBIL Score is essential for loan approvals by lenders. However, low or bad CIBIL score borrowers get loan at higher interest rate from NBFC.
6 Steps to improve your credit score
- Always pay your dues on or before time
- Lenders view late payments negatively
- Keep your credit card utilisation balances low
- Minimise your over all credit utilisation
- Maintain a healthy credit mix
Most of all, It is always better to have a healthy mix of secured loans and unsecured loans. The secured loans such as home loan, auto loan are mortgage in the form of house and vehicle. The unsecured loans such as personal loan, credit cards holder do not require to give any collateral security. In addition, too many unsecured loans may be viewed negatively.
Apply for new credit in moderation
- You should not reflect that you are continuously seeking excessive credit card or loans
- Apply for new credit cautiously
- Monitor your co-signed, guaranteed and joint accounts monthly
- In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments.
- Your joint holder’s or the guaranteed individual’s negligence could affect your ability to access credit when you need it
- Review you credit history frequently throughout the year
- Monitor your CIBIL Score and Report regularly to avoid unpleasant surprises in the form of a rejected loan application.