The CIBIL score is built on how the credit report looks to be. This is basically a summary of your credit activity and repayment transactions. If your credit score is above 750 as a borrower, then it’s probable to have personal loan on favorable terms and conditions. However, a score below 700 can be destructive and can disrupt the pathway to take future borrowings. A low score only ensures greater damage to your credibility in the market.
This December, let’s give a glance at the steps to increase your credit score:
- Get a free credit report from reputed credit bureaus like Experian, CIBIL etc.
- Keep an eye on the accuracy of the report received
- Get the inaccuracies checked in time
- Make timely bill payments
- Pay off older debts
- Avoid misuse of sanctioned credit
- Maintain positive accounts
- Reduce wasteful credit inquiries
There are lot of ways to increase your credit score, and we will ensure to keep you updated through our article.
Get a Clear Credit Report from Trusted Credit Bureaus
The very basic step starts with the credit score, where you forward request for a credit check. Obviously, you cannot draw conclusions on something which you don’t see as a problem. This is similar to a credit score! Till the time you do not have the report in place, it is difficult to negotiate on terms to follow. A free credit report can be easily retrieved on a yearly basis; a few reputed credit agencies can be referred.
Keep an eye on the accuracy of the report received
After you have the credit report handy, it’s good to check details properly. Just ensure that all the details mentioned are not exaggerated or blown over.
Every tiny error can have a costly impact on the credit score.
Try with a New Personal Loan
If after the receiving the credit report, you’re disappointed then better work on it. Your credit score could be low because of less transactions. So it’s better to take a personal loan. The need is to keep a diverse portfolio to have the credit bureau judge it. So a new loan or credit card in the kitty works.
Make timely bill payments
Ensure timely repayments of loan installments and bill payments of credit card. To simplify the process, make payments through your individual credit card. This is a faster way to have your credit score improved. Keep your ledger clean from the beginning of your month.
Pay More than the Bill Amount
Try to make a payment more than due on your credit card. This helps to augment your credit score a bit. Atleast pay make a payment more than the minimum due. Not only will this add to your credit score, but also leave your debt free.
Avoid applying for Credit Cards over and over again
When you apply for a credit score, lending institutions closely check for your credit score. This is precisely done to check your capacity as a borrower and how often can you default on payments.