5 Smart Tips to Increase Your CIBIL Score Quickly
The CIBIL score is a three-digit numeric representation of an individual’s credit history, calculated on a scale from 300 to 900. Officially referred to as the Credit Information Bureau (India) Limited Score, it indicates an individual’s creditworthiness by assessing their borrowing history and repayment patterns. A strong CIBIL score is the most powerful tool for securing a loan with the most favorable terms and conditions.
Tips to Boost Your CIBIL Score
Timely Payments
Prioritizing timely payments on all financial obligations, including credit card bills and EMIs is indispensable to showcase credibility to lenders. Punctuality in payments not only boosts the CIBIL score but paves the way for superior loan opportunities and terms down the line.
Be Particular with Credit Applications
Requesting too many new credits too quickly can cause a momentary decrease in the score from those hard inquiries. Instead, stagger the applications to maintain an optimal credit score. Be particular about choosing the applications and avoid applying for multiple loans simultaneously.
Manage a Versatile Credit Portfolio
Incorporating versatile forms of credit, such as credit cards, personal loans, etc., can be advantageous if managed efficiently. This demonstrates the borrower’s skill in handling multiple types of credit.
Smart Credit Utilization
Aim towards limiting the credit usage to less than 30%. This means if your credit limit is ₹1 lakh, try to use up to ₹30,000 only. This shows the lenders that you can handle finances responsibly and aren’t solely reliant on credit. The lower the spending, the higher the score.
Monitor Credit Report
Monitor your credit report and check your credit score regularly for errors and inaccuracies. This gives an opportunity to track real-time progress and see how your financial habits really impact your credit score. Stay in the know and elevate your credit game.
Remember, boosting your CIBIL score is a gradual process. It demands a lot of discipline and responsibility with your finances to witness actual improvements.
Can You Score a Loan with a Low CIBIL Score?
Yes, it is most definitely possible to get low CIBIL score personal loans, gold loans, home loans, and more! While it might come with its fair share of hurdles, there are several lenders available to cater to those with lower CIBIL scores. They carve out a niche in offering loans against gold and other assets, making it accessible for individuals with lower CIBIL scores to avail of credit. Since these loans are backed by assets, borrowers can sigh in relief, dodging the trap of sky-high interest rates. It is certainly a smart way to score a loan without getting taken advantage of.
Overall, the CIBIL score is a report card that reflects your creditworthiness. It is calculated on a scale from 300 to 900, with a higher score putting you on the A-list for good credit health. Lenders use this score to gauge how risky it is to extend credit to an individual. In order to manage a high score, making timely payments, managing a versatile credit portfolio, and not going overboard with the credit applications will surely help.
