Credit Score/ CIBIL Score is an important aspect in terms of any Loan and borrowing obligations. Anybody who seeks for loan or Credit card their CIBIL score always check. From the following options one can easily understand how to improve their score.
Paying EMI at right time will boost Credit Score:
If you own a credit card or a loan and you are paying your EMI at right time without any default, this builds a trust relationship of borrower with the lending company. Paying your obligations at right time increases your credibility and hence Credit Score is also improved. So paying your due at right time will help in improving the score of credit.
Apply for a New Credit Card:
If you don’t own any loan then also your CIBIL score is showing null. But it is not a panic situation. In this situation to improve score one can apply for a credit card and you will get it easily. Making Payments through credit cards while purchases and paying your balances at right time, will improve your score. Make sure you should not to close your credit card as a short strategy to improve your credit score. It is always advisable not to close that credit card after increasing the credit score.
Not frequently check your CIBIL Report:
Checking CIBIL report frequently will decrease the Score. So avoid frequent checking of Credit Report or CIBIL Report. By doing this one can improve his/her CIBIL Score. Checking CIBIL report can be an important aspect in Credit score.
Always recommend not applying simultaneously various Loans or Credit Card:
A person who in need always makes a mistake while applying for a loan or credit card. The common mistake for them is applying simultaneously loan or credit cards from different companies. By doing this they are dragging down their credit score as the companies checking the CIBIL Report for them. Hence we should avoid applying loans or credit card from different companies at the same time.
Avoid holding various due for different credit card at same time:
Suppose one person is having various credit cards of different companies like SBI, Axis, HDFC and CITI. He is frequently swiping cards for purchases through all credit cards. Soon their due will be high due to frequent purchasing for all the cards. If we looking over his due as a whole we found that his total due is very high and thus chances of missing their payments will also high. So one should avoid high balances for all the credit cards at the same time. It will impact negatively on your Credit Score.
Never exhaust your specified credit Limit:
It is always advisable to use around only 30% of your credit limit. As above that limit will impacts on your credit score. Since the credit limit is given on the basis of your monthly salary structure which is always around 3 times of your monthly credited salary. Using around 30% of your credit limit indicates that you have used your entire salary through credit card and you have no other means to pay them off. So while making purchases with credit card it should be always keep in mind that you should only make a specified limit which can’t make an impact over the credit score.
Settle your disputed payments
Settlement for a disputed amount of charges or any type of fraud happen with credit card or loan will not increase your credit score immediately but it will help in making your score looks good. You can boost your score after a time of period by managing your payments on time. It is an important aspects in terms of CIBIL score. Thus by paying off your all dues and settle your due with the companies will help in improving one’s credit score.