Overview
Do you know your CIBIL score plays a vital role in you getting credit or not? The CIBIL score is given by a credit bureau named TransUnion CIBIL to individuals and companies. It keeps a record of all your credit history. The CIBIL score ranges from 300 to 900.
It’s recommended to regularly check your CIBIL score to ensure it’s going good. But what is a good CIBIL score, and how to increase CIBIL score? Carry on reading this post to find answers to these questions and more.
What Score Can be Considered as a Good CIBIL Score?
The average CIBIL score is anything between 550 and 700. However, you need a minimum 700 CIBIL score to get a personal loan ata legitimate interest rate. A CIBIL score between 300 and 549 is considered poor. You need to figure out how to improve yourCIBIL score immediately if you fall under this bracket. That’s precisely next section is all about!
How to Improve CIBIL Score Immediately?
This article presents 6 smart financial tips that will quickly and positively affect your CIBIL score. Although these tips can’t guarantee an overnight rise, they will help you climb the ladder faster.
1. Don’t Apply for Credit With Low CIBIL Score
Nope! It’s not worth taking a chance. The loan or credit card application will get rejected because of a low credit score. That rejection will reflect in your credit profile for other lenders to see, making the situation worse for you.
2. Use Credit Cards to Generate Credit History
Credit cards are harmful to those who don’t know how to manage them. However, it’s an incredible free financial service if you pay your dues on time. Your credit card statement can generate a favourable credit history, increasing your CIBIL score fast.
3. Get a Mix of Credits
Your CIBIL score and credit history get a tremendous boost when you have 3-4 different types of credits going on. For instance, home loans, credit cards, personal loans, consumer loans etc. Pay your EMIs on time and watch your CIBIL go up with rocket speed.
4. Streamline Your Loan Repayment
Many people with unpaid loans keep wondering, “how can I improve my CIBIL score” when the answer is right there in front of them. Start paying pending instalments! If the EMI amount is an issue, the lending company might help. But you can’t expect your CIBIL score to rise with an unpaid loan.
5. Make Multiple Monthly Payments for Credit Cards
The credit card company submit its credit report to the bureaus once a month only. To ensure your report shows consistent payments, pay multiple times in a billing cycle instead of paying at the end of the billing cycle.
6. Apply to Increase Your Credit Limit
By increasing your credit limit, you will improve your credit utilization ratio. But remember not to use the increased limit and spend according to your previous limit only. An ideal credit utilization ratio is 30% or less.
Bottom Line!
These strategies will surely provide you with a healthy credit score. But your task doesn’t finish here. Keep honouring your debts consistently, don’t take many credit cards and unsecured loans, and maintain a financially stable credit history. Do all this, and you won’t ever again need to think about how to increase CIBIL score fast?
Author Bio: A finance enthusiast, Mihika Ghosh, works as a Digital Content Creator at Fit.Credit, an all-in-one app that helps you check your credit score for free, stores your financial documents, and gives you timely payment reminders. She creates content that educates people on how they can improve their credit scores along with other investment and finance-related topics. When she is not working, she loves to travel and read to keep up with all things finance and economics.
