How to Improve CIBIL Score?

It is essential to maintain a good credit score, and thus here we are listing tips to improve your CIBIL score:

  • Regularity in Bill Payments: You must pay all your credit card bills regularly, especially any loan EMIs, outstanding dues, credit card bills etc. Also, pay the entire credit card bill than only the minimum amount.
  • Leverage your Credit Limit: In case you have a lower credit limit, then there are chances you spend more with your credit card. So boost your credit limit, which will give you a better opportunity to be comfortable with spending.
  • Do not Borrow when you can afford to Pay: Keep your borrowings to a minimum, as it depicts that your credit history is great, and you can be relied on economically. There are also fewer chances to default (even missing payments), once you limit your borrowings.
  • Not Just Unsecured Loans: Opt for a mix bag of credit with both secured and unsecured loans when needed, and do not depend on just collateral-less loans. Unsecured loans may give an impression that you do not have sufficient assets to take credit on, which is not a problem unless you take too many of unsecured loans compared to secured ones.
  • Rethink about Being Loan Co-applicant: If your co-partner as loan applicant defaults in making loan payments, the behaviour will affect your credit score as well. So be careful when you act as a co-signer to the same. You are as much responsible for the loan repayment as the other loan applicant.
  • Try Avoiding Loan Settlement: In case of settling loan with bank, you end up closing loan over a smaller amount to be paid than the one decided. The amount is paid in lump-sum to the bank. However, loan settlement reflects negatively in credit report and hampers credit score.
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