Tips to improve CIBIL Score after Bankruptcy
When you cannot repay the debt, you may be deemed as bankrupt. It can even reflect in case of huge loss in business or financial support that helps you sail across your daily life or major economic paths. When you go bankrupt, your CIBIL score decreases and getting further credit is next to impossible. Worst, bankruptcy shows on your credit report for at least 7 years.
You can also recover from bankruptcy and establish a sound credit score by following the below-mentioned measures:
- Get a Secured Credit Card: Apply for secured credit cards against fixed deposit. Usually the credit is a specific percentage of amounts kept in fixed deposit. Following this step will aid in fixing bad credit score. Make timely payments when you get this credit card. Do not miss or delay payments, and gradually the credit score will increase.
- Review Your CIBIL Report Regularly: Get your CIBIL report information on timely basis, say one or twice in a year. Pay attention to the details in the report and raise dispute with CIBIL in case of any inconsistencies or errors seen in the report.
- Take an Affordable Loan: After a comfortable period of say one or two years from bankruptcy, take an affordable or small loan which you can pay off easily. The lenders may still charge high interest rate, so select your loan product carefully.
- Keep Credit Cards Active: Do not close any credit card simply because you had been bankrupt once upon a time. Make regular payments for credit card bills so that it has positive effect on your credit score.
- Pay Bills on Time: Your payment history influences 35 percent of your credit score. Thus, timely payments for credit cards and loans should be adhered to.
- Do Not Go Overboard on Credit Limit: Spend meticulously and avoid defaulting financially along with staying strictly within the credit limit assigned.
- Never Take Credit Repair Services to Leverage CIBIL Score: Such services are expensive and may be illegitimate, thus beware while making choices. Try to fix your credit score by self as you will then be updated with your credit history and behaviour without paying any fee.