Posted On: 22-September-2022
CIBIL score usually ranges between 300 and 900. The closer your CIBIL score is to 900 the better. Scores between 550 to 700 is considered fair and scores ranging from 300 to 549, poor. But there's always a chance to improve, or ways to improve one's CIBIL score. If you understand the factors the affect the credit score and take conscious measures to improve it you can easily improve your credit score.
Take a look at how to improve CIBIL Score.
1. When you borrow personal loans try to opt for a longer period of tenure, because the longer the tenure period the lesser will be the EMI which will make sure that it gets easy for you to make timely payments without you defaulting, skipping paying, or delaying.
2. How you repay your outstanding debt will have a direct and significant impact on your credit score. This is why you need to pay importance to how you pay your EMIs. If you may delays in paying the EMI it will charge you a penalty fee and would also affect your credit score negatively. Thus, if you think you're capable of delaying the payments, set a reminder so that you pay your monthly EMI outstanding on time, thereby improving your credit score.
3. The ratio of your credit utilization has a significant impact on your credit score. The more you can restrict your credit usage as per the alloted limit the better it is for your credit score. To not let it effect your credit score you can contact your lender and ask him to customer your credit limit based on your expenses.
4. Try to take as lesser number of loans as possible at a time. The number of loans you take in a fixed period of time should be minimal. To keep your credit score from crashing repay one loan first and then take another. Taking multiple loans together affects your credit score as it shows that you're in an unforgiving cycle of insufficient funds. In contrast to that if you repay a loan and then take another one it will boost your credit score.
5. There have been instances where the CIBIL has made mistakes while updating your records, noted incorrect information about your report, or delayed recording details. This is likely to bring down your CIBIL score. Thus, ensure to check your CIBIL score from time to time. If you keep checking then you'll be able to catch the errors and get them rectified. Doing this will help you improve your credit score.