Seven Tips To Improve CIBIL Score
Posted: Aug 27, 2020
We know that a good CIBIL score helps us to take any kind of loan or credit facility easily. In this article, we are going to share some useful tips to improve and maintain good CIBIL Score. As we all know if your CIBIL Score is greater than 750 then you can get any kind of loan very easily. So in this article, we are going to look at the important parameters to improve the CIBIL Score.Why The CIBIL Score Drops:
Range of CIBIL scores is 300 to 900. CIBIL score calculates your default probability. Means CIBIL Score shows that you are eligible to pay the loan amount or not. 900 is the maximum CIBIL score and 750+ CIBIL Score is considered as a good score. 30% Cibil score weightage is given to your past performance means how you repay your past loan amount. The second factor is your credit mix means a mixture of secure and unsecured loans. The third point is leverage, 25% weightage is given to leverage. Leverage means how much percentage of total credit you are using. And 20% weightage is given to the other factors while calculating the CIBIL Score.Following Are Some Factors Which Affect Your CIBIL Score.
1. Default on Loan repayment or credit card repayment.
2. The high amount of unsecured loan.
3. Leverage of the person who wants to take a loan.
4. If you are generating multiple credit card enquiries or loan enquiries then this also generates a negative impact.
5. If you take a joint loan this also affects your score.
6. If you are a guarantor for any loan borrower defaults the loan then your credit score is affected.
You should have to pay your loans and credits on time because this is the biggest reason for a bad CIBIL score. If you miss EMI for some genuine reasons then you should have to pay your full amount next month. Sometimes you miss your instalments by mistake hence as a reputed private financier in Delhi we suggest you to pay your instalment using an automated payment method. In case of any dispute with lenders for fraudulent transactions, extra charges etc. settle it and pay the agreed settlement amount.Credit Mix And Duration:
Limit your unsecured credits to less than 20% off your total credit limit. The second thing is you do not have to take too many loans in a small time period. If you inquire for 3 to 4 loans in 2 months then it will negatively impact your credit score.Don't how Your Credit Hungry Behaviour:
Limit your credit card spending up to 30 to 35% as compared to your credit card limit or monthly salary. As reputed Personal loan providers for CIBIL defaulters, we suggest you limit your monthly instalments less than 40 percent of your monthly salary.Proper Management Of Credit Cards:
You should have to properly manage your credit cards. First of all, you do not have to take multiple credit cards. Do not take more than one or two credit cards. Try to pay full credit amount because if you do not pay the full amount then this will count as default and this negatively affect your CIBIL scoreAlternative Loans And Credit Cards To Rebuild Credit History.
We suggest you take a loan against FD, Mutual fund loan, Gold Loan, Loan against LIC policy, Shares etc. if you pay this type of loan on time then this will help you to improve your credit score. You can also take a credit card against your FD if required.Monitor Loan Accounts:
We suggest you monitor your joint loan, monitor a loan if you are a guarantor for any loan, monitor loan taken by your company if you are partner, director or guarantor at the company. You should have to ensure that these loan payments are done on time or not.Report Inaccuracies Once a Year:
You have to check your credit report once a year. Check your all open account and if there any inaccuracies in any account then report CIBIL Consumers dispute resolution online. We also suggest checking for discrepancies in settled loan accounts.
HI i am riya sharma. and i am working as digital marketer at vintage finance one of the reputed private loan company in delhi.