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Strategies to Improve your CIBIL Score Effectively




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A CIBIL score is a crucial factor when an individual applies for loans. Having a good CIBIL increases the chances of loan approval. A CIBIL score of 700 and above is usually considered good, increasing the individual’s creditworthiness. However, if a borrower has a low CIBIL score, they can take some steps to improve it. This guide, contains some essential tips regarding how to improve CIBIL scores.

What are the different strategies to improve CIBIL scores?

Here are some effective strategies for how to improve CIBIL score:

  1. Checking credit report regularly

An individual should make sure to check their CIBIL reports regularly. It helps to identify any defaults or delayed payments that may have lowered their score, allowing one to address them.

  1. Disputing inaccuracies

One must immediately dispute any errors on the credit report through relevant platforms to ensure that the CIBIL score reflects accurate information. Resolving these errors within 30 days can lead to improve cibil score.

  1. Not applying for multiple credit cards

One should not apply for multiple credit card to cover their monthly expenses. Also, they should refrain from exceeding their credit card limit. Otherwise, they get projected as an irresponsible financial planner, leading to lowering of their credit score. 

  1. Choosing a long tenor

Opting for a long repayment period lowers one’s monthly instalment and eases one’s financial burden. It helps in timely repayment, reducing the risk of defaults, and ultimately improves the individual’s CIBIL score, making it easier to obtain loans in future.

  1. Building a good repayment history

Using credit cards occasionally and making timely repayments demonstrates an individual’s ability to handle debt responsibly. Keeping old debt accounts open can also contribute to a higher credit score.

  1. Avoiding risky behaviour

To maintain a good CIBIL score, avoid actions that could pose a risk. These include missing payments, sudden reduction of regular payments, taking cash advances, or using cards at businesses. It is crucial to avoid any behaviour that may signal a risk to one’s creditworthiness.

  1. Selecting a variety of credit options

Borrowers should diversify their credit portfolio by including both secured and unsecured loans. A mix of home loans, mortgage loans, personal loans, auto loans, etc., is beneficial for maintaining a healthy CIBIL score.

  1. Being cautious with joint applicants

Borrowers should limit joint credit applications to avoid any negative impacts on their CIBIL score due to defaults by their co-applicants. Ensuring timely payments on joint accounts is essential to safeguard one’s creditworthiness.

  1. Monitoring credit utilisation ratio

An individual should keep their credit utilisation ratio below 30% by limiting credit card usage. It can positively impact their credit score. Also, they can increase their card limit to keep their expenses in limit.

  1. Making timely EMIs payments

Ensure timely payment of EMIs for big purchases, as it significantly improves a borrower’s CIBIL score. For this, you can set payment reminders or even set up autopayments from your account. 

How to check the CIBIL score for a home loan?

Here are the steps an individual needs to follow to check their CIBIL score for home loans:

Step 1: Visit the official CIBIL website and select ‘Get your CIBIL Score’ at the top-right corner.

Step 2: Next they have to enter basic details including date of birth, gender, email address, etc.

Step 3: Under the identity proof section, they need to select their ID type and input the required details.

Step 4: Proceed for verification and answer the questions correctly. 

Step 5: Next, they have to make payment if required. 

Step 6: Login using email or OTP authentication and fill out the form that appears.

Step 7: Review all entered information and click ‘Submit’ to proceed.

After submission, the individual can see their CIBIL score on the dashboard.

Several top-rated lenders provide various pre-approved offers on financial products such as home loans, loan against property, etc. Existing customers can claim these offers to speed up their credit approval process. To check their offers, one can move to the official website of their desired financial institution and enter their personal and contact details. 

In addition to addressing the mentioned factors to enhance the CIBIL score, consumers can also consult their chosen lender for guidance on how to improve CIBIL score. This approach fosters a positive relationship over time, enabling borrowers to negotiate for more favourable terms.

nancy Ahuja
nancy Ahujahttps://finance-plus-investments.blogspot.com
I am an independent girl and running my business for the last 5 years and also a blogger.I love to explore new ideas for business and self-development. I love to write on business and finance.


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