The Ultimate Guide on How to Improve CIBIL Score.

CIBIL Score is financial health indication of any person or company. It shows that what is the credit behaviour of a person. It affects the loan availing capacity. It becomes difficult for a person to avail any loan from Banks and leading NBFCs in case he has low CIBIL score. So, we will see how to improve CIBIL score and maintain credit health of a person.

Payment of EMI

Timely payment of EMI is very important. In case of delay in payment impacts CIBIL score badly. Hence it is essential that sufficient balance is maintained in the account from which EMI is going to be auto debited. One can put a reminder also and approach lender in case EMI is not deducted timely even when the account has sufficient balance.

Credit Card spending

Credit Card is again very high impact factor for CIBIL score. Hence credit card utilisation should be done wisely. One should try to use card and pay total amount due (TAD) by last date of payment after interest free period. Even if you feel that spending is more than your repayment capacity then transaction should be converted in to EMI. Never cross 80% of your spending limit because it dents your CIBIL score badly.

Regular default in payment of EMI

Payment of EMI should be regular. Even if you defaulted the payment, you must deposit it as soon as possible. Because if you default two or more EMI continuously, then your chance to avail any kind of loan is poor. Hence, never ever default loan.

Tenure of loan

Amount of EMI of any loan depends upon the amount of loan and tenure of loan. Hence if customer thinks that he may have some other liabilities or borrowings, then tenure of loan should be maximum so that loan EMI reduces considerably. It will also lower the chance of default in EMI payment.

Loan Inquiry

Many a customer, who have low CIBIL score, try to get loans through various agents or banks. It results in inquiry generated through CIBIL score maintaining agencies like TransUnion CIBIL and Experion, etc. So, customers should process their application for loan when they are confirmed that loan is likely to be sanctioned. Also, if customers provide their information, agencies may misuse it for illegitimate purposes.

Number of accounts

Many a people maintain many account numbers in various banks. It causes loss in two aspects. Firstly, it needs to pay some charges to maintain it and secondly it imposes wrong impact on CIBIL score. Hence number of accounts should be as low as possible.

Raise complaint

In case you found that there are some discrepancies in CIBIL score, online grievances should address it redressed system. The entire process is performed online and discrepancy in CIBIL score is rectified at the earliest. It will help in improving the score in the future.

Read this article to Know more about Credit Card Data Breach And Easy Ways To Protect It.

Conclusion

If we follow above precautions, we can improve our CIBIL score fast and also can maintain it healthy in the future. It will not only help us in availing loan when required but also the rate of interest will be more attractive with best CIBIL score.