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10 Sure-shot Ways to Improve CIBIL Score

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CIBIL Score

Looking for the best ways to improve your CIBIL score? Confused about your CIBIL Score? Have a look at the article below to find all you need.

What is considered a fair CIBIL Score?

CIBIL is the most popular company that maintains millions of customers’ credit information across the nation. The CIBIL score check is a three-digit numeric representation of the credit history, rating, and report. This score ranges between 300 to 900. It is considered best when closer to 900.

How is the CIBIL score calculated?

The Credit Score is calculated by studying several factors like length of payment history, payment history, credit application, debt amount, etc.

Let us look at the ten best ways to improve CIBIL Score.

10 Ways to Improve CIBIL Score

Repay credit dues on time

It is vital to make regular payments to maintain a good Credit score. Delayed payments can lower your credit score. To avoid such a situation, it is advisable to set up reminders and ensure you clear all the dues on time.

Avoid taking excessive credit

Taking excessive credit can be risky. When you apply for multiple loans then it negatively impacts your CIBIL score. To ensure a good Credit score, you should use 30% of your credit card.

Maintain a fair credit mix

Try to choose a perfect combination of secured and unsecured loans. Also, pick loans for both short and long-tenure.

Apply for a fresh card as per your ability

Avoid applying for credit cards excessively. It can lower your Credit score. It might cast a poor impression on your report as well. Only apply for a new credit card when you genuinely require It and have the ability to repay the same.

Apply for a higher credit limit

Applying for an increase in your credit limit has several benefits. It enables you to make more use of your available credit. It also ensures an increase in credit scores. Just keep in mind to make regular repayments.

Pick for a longer term when taking up credit

It is advisable to pick loans with a long tenure. A long tenure has numerous benefits. First, it ensures timely credit payment. Secondly, one does not have to make bulky payments, and third, it reduces the mental pressure of an individual for repayment.

Check your credit reports regularly

It is very important to look at your credit reports regularly. These reports provide good insights into the shortcomings of poor or average credit scores. Through this, one can plan ways to eliminate those mistakes and improve their credit score.

Avoid joint applications

Try to avoid making joint credit applications at any cost. This situation can lower your Credit score for no fault of yours. You can always be sure if the subsequent person who took the loan will make regular payments or not, and this delay can result in lowering your credit score.

Avoid taking frequent credit

It is advisable not to make frequent credit applications. This can cast a negative impression on your report. Taking frequent debt lowers your CIBIL score.

Don’t deactivate your old cards

In case you have old credit cards, try to maintain them. It has a positive impact on your credit score. Maintaining the old credit cards shows a borrower’s reliability, improving your CIBIL score.

Conclusion

This article lists the best ways to be followed if you wish to improve your CIBIL score. Get free Credit score from Wishfin CIBIL Score App. Don’t forget to keep in mind that getting the results of these habits might take time. We hope the article was informative and helpful in improving your CIBIL score.

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