February 5, 2023
cibil score

A three-digit figure called a CIBIL score represents your credit report. If your CIBIL score is close to 900, which ranges from 300 to 900, it is regarded as a good score. On the other side, there are fewer chances for you to incur any debt if your score is closer to 300. As a result, it’s not favorable to routinely check your CIBIL score to maintain it. The CIBIL score is the credit score determined by TransUnion CIBIL. It monitors and tracks one’s credit history and also issues credit scores ranging from 300-900.

CIBIL Score RangeRating
300-500Poor
550-650Average
650-750Good
750-900Excellent

How to Improve CIBIL Score Immediately

If you want to improve your credit score, you are not alone. It is important for you to know that CIBIL does not just look at the negative aspects of a person’s finances while computing their rating. They also consider how often someone pays their bills on time and how they pay them – whether they pay at different intervals or pay in full when they are due.

Read: Difference Between Loan Write-Off And Loan Waive-Off

1- Set Reminders for Timely Repayment

It can be a serious mistake to neglect to make repayments on your ongoing debt because it can negatively affect your credit score. Whenever it comes to making EMI payments, you must be prompt. In addition to paying penalties if the EMIs are late, the credit score will also suffer. Make sure you set reminders on your phone so that you never forget to pay on time if you have difficulty remembering.

2- Verify your Credit Report for Errors

Despite the fact that you could think your credit history is clean, there could be a lot of hidden errors harming your credit score. Imagine you have paid off your debt in full and closed it on your end, but due to a clerical error, it is still listed as being due today. You must also keep an eye out for additional mistakes and odd behavior. Your score will immediately go up if you rectify these faults.

3- Maintain a Balanced Credit mix

Statistically, it is good to have a healthy balance between secured loans, like an auto loan or home, and unsecured loans, like credit card payments and personal loans. Credit reporting agencies and lenders both prefer customers with more secured loans, as do credit reporting agencies. As a way of maintaining a healthy ratio of your unsecured loans to your secured loans, if you have a higher number of unsecured as opposed to secured loans, it may be a good idea to prepay your unsecured loans.

4- Credit Cards Needed to be Clean

Clearing all of your credit card debt demonstrates the kind of behavior that lenders look for in borrowers. Plan ahead to pay off your credit card amounts in full before the due date to raise your credit score.

5- Refuse to Hold a Joint Account

Avoid opening joint accounts or signing on as a loan guarantor because either party’s default will affect your CIBIL score.

6- Purchase a Secured Card

Your CIBIL score will increase if you obtain a secured card from a reputable bank, such as ICICI Bank, AXIS Bank, SBI, etc., in exchange for a fixed deposit and repay the remaining sum by the due date. Paisabazaar also provides one such card, the Step-UP Card.

7- Refrain from taking out several loans at once

To avoid having your credit score decline, it is a good idea to pay off the present loan before applying for another one. Taking out several loans at once suggests that you might not have enough money to pay them all off. To improve your credit score, it is preferable to take out and repay one loan at a time.

8- Reduce the Amount of Credit you use

Avoid using a credit card to the absolute maximum in order to raise your credit score. It is recommended to keep the CUR low, ideally under 30%. If, for example, your credit card limit is Rs. 1,000,000 per month, you should strive to limit the use of your credit card to no more than Rs. 30,000 each month. Your credit score might not be affected if you keep your credit utilization ratio between 60 and 70%, but if you frequently use all of the available credit on your card or keep it above 90%, your score might suffer.

9- Settle for a Longer Tenure

A loan with an extended payment term might be worth considering. By doing this, you will be able to lower your EMIs and you will be able to make all of your payments as scheduled without any hassle. You’ll raise your credit score and keep your name off the list of defaulters.

10- Enhancing Credit Limit

Whenever your bank requests that you raise the credit limit on your card, you should never refuse to do so; you can also raise the limit yourself. It simply means that you will need to handle your money carefully rather than increase your monthly spending. To leave a positive influence on your score, the basic trick is to accumulate a lot of credit as well as keep your usage low.

After a Loan Settlement, Improvement in Credit Score

Loan settlement may reduce your EMIs each month, but it will harm your credit. However, in order to raise your credit score following loan repayment, you must

  • Pay all of your debts on schedule.
  • Keep your credit usage ratio low.
  • Don’t ask for loans immediately away.
  • Create a credit history

Conclusion

I hope you understood How to Improve Your CIBIL Score Immediately If your CIBIL Score is low or you can want to improve it immediately then apply all steps. If you like the post then please share the post. If you have any questions about it then please do comment below.

Leave a Reply

Your email address will not be published. Required fields are marked *