Smart Tips That Will Help You Improve Your CIBIL Score And Your Creditworthiness
Your CIBIL score is a three-digit rating based on your credit payment history. This rating plays a direct role in determining whether your loan application is approved or not. Here’s how you can ensure a good CIBIL score.
Taking a loan is a process that requires a certain level of care and caution, as well as a lot of calculation in terms of your finances. Much of the success of a loan application getting approved depends on your credit worthiness. The interest rate on Personal Loan can also differ depending on your credit score. The CIBIL score determines your credit worthiness to a major extent, and is known as your credit score. It calculates your score based on your previous debt repayment history, be it loans or credit card bills as well as any past rejections of your loan application. The CIBIL score falls between 300 and 900, a good score is usually above 700.
Here are a few ways to improve your credit worthiness:
1. Monitor Your Credit Balance: It is important to keep your credit balance to the minimum in order to improve your chances of getting a Personal Loan. Paying off your credits on time can help improve your overall credit worthiness and credit score. This step will also involve keeping a keen track of every bank statement issued so that you can prevent exceeding a certain number of transactions.
2. Clear Your EMIs On Time: Pending EMI payments can lead to a bad credit score, since its call your repayment behaviour into question. It is important to make it a point to pay off your EMIs on time and keep a track of the due dates of every EMI payment. Successfully completing this can help rid all your pending EMI payments and improve your credit worthiness.
3. Manage Your Credit Limits: Credit limits are permissible restrictions over credit given by banks and other lenders. It is important to set a credit limit for yourself to an amount that you can repay on a regular basis and that which matches with your monthly income. It is important to set this amount keeping in mind your expenses in mind too. Once this is done, your credit will be limited, thus, helping you attain a higher credit score.
Also Read: How to Improve Cibil Score?
4. Clear Your Debt: In the course of their life and work, individuals and organisations incur debts. While this is a given, it is important to clear all this debt on time and keep a health ratio of debt and income. It is also important to limit debts and pay them off on a timely basis. This will also involve paying EMIs on a regular basis and repaying loans within the deadline. This is sure to give you a better credit score and improve your chances of getting a loan.
5. Report Errors In Statements: View every credit card statement cautiously and keep a personal record of all your expenses made using the credit card separately. This can help you monitor any errors or inaccuracies in the statements and report them accordingly to your credit card company. Failure to do this can cause your statement to show false figures, and hence may lead to a bad score.
6. Own Limited Number of Credit Cards: With various offers on credit cards offered by different brands, it has become common for everyone to opt for numerous credit cards at one go. This leads to difficulty in managing the cards and causes lack of management. It also becomes difficult to monitor the credit on too many cards. Hence, keep a manageable set of cards and monitor their statements thoroughly. This will help you pay back your credit card debt responsibly and maintain a good CIBIL score.
A good CIBIL Score will ensure that you Personal Loan application will be approved without a hitch. After all, Personal Loans are the most handy way of accessing immediate funds for all kinds of uses, be it for medical care, wedding expenses, home improvements and even travel. If you’re looking for an affordable Personal Loan that gives you instant approval and disbursal of the loan in 72 hours, apply for Bajaj Finserv’s Personal Loans. They even have a choice of tenures based on your needs and flexible repayment options.