How to improve your credit score?
The importance of the credit score cannot be underestimated when it comes to applying for loans. Your credit score is a three-digit score that indicates your creditworthiness and is assessed by lenders while considering your loan application.
A CIBIL Score of 750 and above is perceived as favourable by lenders, usually allowing you a better loan deal. On the other hand, a low CIBIL score means you may face difficulties in getting your loan approved.
Tips to improve your credit score
Default on loan or bill payments may hurt your credit score. But this does not mean you can’t take steps to undo the damage done to your CIBIL Score.
To begin with, you can start by doing a CIBIL score check. Know your CIBIL score and get hold of your credit report in order to fix any incorrect listings that may have lowered your score. This will also help you understand the CIBIL score calculation better.
Going forward, you should manage your credit cards and loan repayments judiciously. Use fewer credit cards and pay credit card bills on time in order to boost your CIBIL score for Personal Loans.
Ensure that you repay your loan EMIs in a timely manner and avoid defaults. Plan out your credit card usage carefully in order to prevent excessive debt piling up under your name. These simple steps should help you improve your CIBIL score and help you when get a good deal when you apply for a personal loan.