Seven ways to increase your CIBIL Score
A CIBIL score is nothing but a consumer credit score. It is just a three-digit numeric summary. It focuses on the history of your credit profile and its reflection.
1. Check your credit report: Now that you get a free credit report every calendar year, you should be careful about the transactions that you do. This report lets you know about the information that is reported on your profile. In case there is any discrepancy or default or information about a loan that you never came across in your life. Then you can raise a dispute to the bank and get it corrected. Then your score can get revised.
2. Customize your credit limit: The more you restrict yourself to the usage of credit the better is your score and vice-versa. Your credit utilization has an overall impact on your credit score. So it is necessary for you to customize your credit limit. You can get in touch with your lender for this purpose.
3. Get a secured credit card: If your score is lower and you want to rebuild the score to a good one then you can ask your bank to give you a more secured credit card and if you are making the payments on time then you can have a good credit card score and this helps you to increase your score.
4. Maintain older credit cards: In case you are a holder of multiple credit cards then keep using them as long as you are able to pay the bills. This would help you increase your credit card history which In-turn would help you have a good CIBIL score.
5. Enhance your credit limit: If you have a good credit score and you want to increase it further then you can go for the enhancement of credit which is usually offered by the banks at many times. Yes,it is not compulsory for you to accept it. You are at liberty to reject the offer. But in case you accept it, then it is a good way to increase your CIBIL score.
6. Avoid applying for multiple loans and cards: If you are credit hungry and you apply to various banks for the card and loans then there is a chance of rejection because the banks consider your credit score including the previous transactions. So it’s better to avoid multiple loans and cards so that you can have a good CIBIL score.
7. Pay off old debts, make future payments and bills on time: If you have any pending debts pay them off as soon as possible. You should also pay any payments that you need to pay in the future including the bills on time. This will increase the value of your credit and will help to increase your CIBIL score.
By adhering to all these practices you can increase your CIBIL score easily and quickly. Once your credit profile is good and you follow all the above steps then your CIBIL score will be wonderful.