How To Improve CIBIL Score? 7 Effective Ways To Improve/Increase CIBIL Credit

How To Improve CIBIL Score

Before discussing ways to increase CIBIL Credit limit, let me tell you why the topic “How to Improve your CIBIL Score” has become talk of the town. Well CIBIL score or Credit Score is an important three-digit numeric summary comprising the credit history of a credit card holder.  

CIBIL score is produced against the credit card holder’s permanent account number (PAN). Payment made through credit card or any default made in the payment of interest, all these details are updated by the credit issuers into the card user’s rating agency database. CIBIL score is concluded on the basis of this rating agency database of a credit card user.

So this is what CIBIL score is, you might be wondering what relates CIBIL Score with credit card limit. Well, if you are holding an excellent CIBIL score, you’ll have a good reputation in the eyes of your bank. The bank approaches itself to credit card users if they are using the credit card properly and making timely payments. However, to generate a good CIBIL score here’re 7 Effective Ways To Improve CIBIL Score.

How to Improve your CIBIL Score

Ways To Improve CIBIL Credit Report

Hope now you can conclude what is a good CIBIL Score and Why CIBIL Score is Important . Appliers need to improve their CIBIL Score to apply for a new loan or credit. Customers, who don’t have good CIBIL Score must follow 7 Effective Ways To Improve CIBIL Score.

Check Your Credit Report

  • You must be habitual to check your CIBIL Report regularly as it will mention two main Factors That Can Affect Your CIBIL Score.
  • First factor will be the loan or credit card, your late payments or defaults impacts bad on your credit score.
  • Second factor is that your all details will be mentioned in credit report.
  • With the help of above mentioned details you can easily acquire the details of negative information.

Don’t keep applying for credit if rejected

  • Customers are informed that if their loan has been rejected that information will be also recorded in CIBIL Report.
  • Application for the loan or credit in other bank can be rejected on the basis of your low score and the previous rejection.
  • You must not apply for the loan again; it can improve your CIBIL Score.

Pay your loans

  • Individuals who have been delaying the payments must make their priority to pay on time.
  • Customers, struggling with the current EMI have to pay it soon then they can approach their bank to help their restructure the debt to make it easier to pay.

Pay your credit cards on time

  • Always make your credit card’s payment on time and try to not come too close to the limit of your credit cards.
  • You should also make sure that you are not paying back only the minimum amount due on your cards, you need to pay back the entire amount or at least a sizable amount. This is one of the best tips To Increase CIBIL Score.

Get Smart Ways to Use Credit Cards: 10 Top Credit Cards Usage Tips For 2018

Don’t settle loans and credit cards

  • Many times, customers settle a credit card or loan, it means they approach the bank and ask for a deal.
  • That deal will allow them to close the debt for an amount that is lower than the actual amount due.
  • This settlement reflects on the credit card and effect negatively on your credit report.

Watch out for joint applicants

  • Joint applicants mostly suffer even if they have not any fault. In this situation, if you are the joint applicants for a loan someone and they have defaulted on payments, it impacts badly at your credit score.
  • You must ensure that the loans and cards are being paid for on time.

7 Proven Ways to Increase your CIBIL Score to 800+

Credit Rating or Credit Score are the important part at the time of applying for a loan or credit. Appliers for any loan such as Housing loan, card loan, etc. need to have Good CIBIL Score. CIBIL score of 750 and above increases your probability for getting approved for a loan or credit card. Here we have listed 7 Best Ways to Increase CIBIL Credit Score that you must be aware of!!

#1. Get Secured Credit Cards:

Secured credit cards are the best way to improve your CIBIL Score as well as to increase it. Bank or financial institutions don’t pull any hard inquiry on your CIBIL Account and if you use it properly, it can increase your score within a year.

#2. Take a Housing Loan:

Individuals are informed that credit cards and personal loans are considered as a “bad credit” and in other surface Housing loan is considered as a “good credit”. You can check your CIBIL Score using PAN Card and get the idea of it is bad or good. You are suggested to have an active housing loan on your name or as a joint holder, which impacts on your CIBIL score positively.

#3. Educational loan Helps too:

Educational loan helps you to get Good CIBIL Score. Customers are informed that if they don’t apply for education loan, other loans such as Car/bike loans and Installment loans are also considered as “good”.

#4. Credit Card loans like HDFC Insta Jumbo Loan:

HDFC Insta Jumbo Loan is credit card loan on HDFC credit card without reducing your credit limit. Individuals having CIBIL Score HDFC Home Loan or HDFC Insta Jumbo Loan are informed that it just like a personal loan and its reported to CIBIL as a “credit card” which is a good thing. The best part of it is that you don’t get any hard inquiry on your a/c when you avail this Jumbo loan.

#5. Increase the Age of your credit history:

Individuals need to ensure that they never close one of their oldest credit card accounts. Your oldest loan preferably credit card can help to improve your CIBIL score. Your oldest loan shows your loyalty and credit worth to the new lenders. This is one of the best tips on How To Improve CIBIL Score.

#6. Stay within 30% Credit Limit:

Customers are required to ensure that their expenses are within 30% of your credit Limit. It shows you that your outstanding amount on your card must not exceed this number. Customers can always pay in advance to your card a/c if they spend more.

#7. Keep the Credit Cards Active:

Individuals are required to keep their credit cards active if there will be no usage/outstanding on the card, it impacts badly on your CIBIL Score. CIBIL Report shows your all credit history and you must rectify the errors and have knowledge of How To Correct CIBIL Report.

Last Words!!

Individuals, we hope you are persuading with this page of How To Improve CIBIL Score? 7 Best Ways to Increase CIBIL Credit Score and now you have knowledge of the entire process also. If you still want to grab more details of How To Improve CIBIL Score, you may visit the Official Website or stay connected with us through our web portal that is customer-carenumber.com

You Should Put An Eye On This!!!

Who Issues Credit Rating Or Credit Score? CIBIL Frequently Asked Questions
KYC Documents For CIBIL CIBIL Defaulter List
New Laws Regarding Loans CIBIL Score Required For SBI Home Loan?
Home Loan Eligibility Calculator Ways to Increase HDFC Credit Card Limit

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