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It is not an easy task to increase the CIBIL Score. Increasing the CIBIL Score requires a lot of effort and discipline. You cannot increase your credit score at one go. You need to implement some strategies that will enable you to initially improve your credit score and later on increase the credit score. Here are some important points to consider while planning to increase your CIBIL Score. Given below are few crucial points that will help individuals in increasing their CIBIL Score.
1. Do Not Exceed Credit Limit:
It is advisable to spend in such a way that you do go beyond the credit limit of 30%. This implies that your outstanding amount should not exceed beyond this percentage. In case you have spent more, you should make an advance payment to the card so that you haven’t used more than the appropriate limit.
2. Go for a Home Loan:
Home loan comes under a credit which is good for a borrower. You will have a good credit score if you have taken a home loan and not personal or any other loan. If there is a home loan on your name or a joint home loan, you will see that there are positive impacts of it on the credit score.
3. Choose Secured Credit Cards:
The credit cards that are issued against Fixed Deposits are known as Secured Credit Cards. If you are one among those who have chosen secured credit cards rather than other credit cards, you will experience that your credit score has increased. The proper usage of your secured credit cards will help you in raising your credit score in a span of a year.
4. Take an Educational loan:
If you have an education loan which was begun 5-6 years ago, and you have closed it just recently, then you can expect that it will help in increasing your credit score. This is so because education loan is a good credit
5. Make Timely Payments:
If you have made your payments on time, you will see that there is an increase in your credit score. These payments include bill payments, EMIs etc. It is always recommended to make the payments at least a week before the due date.
6. Opt For a Jumbo Loan:
In case of jumbo loans, a credit card is provided to the borrower and the credit limit is also not reduced. Though it is recorded in CIBIL as a credit card, there is no hard enquiry when you take this jumbo loan.
7. Maintain Your Old Accounts:
It is the best choice to always maintain your old accounts as these accounts help you in improving your credit score. So it is advisable not to close your old accounts if you are willing to increase your credit score.
8. Maintain Active Credit Cards:
It is always better to keep your credit cards active so that it does not have a negative impact on your credit score.
9. Set Reminders for Making Payments:
You need to make all your payments on time if you have an intention to increase your credit score. If you are a forgetful person, you can set reminders for making the payments on time.
Setting reminders will ensure that you have not missed on any of your payments. If you fail to make the payments on time, you will see that your credit score has been lowered.
10. Keep a Check on Your Credit Report:
You need to keep a track on the credit report on a continuous basis as it will help you in understanding the errors or mistakes that lead to a low credit score. Identifying the errors at the right time will help you in eliminating them in a proper way so that you can focus on increasing the credit score.
11. Clear the dues completely:
Whenever you receive a bill, it shows that you need to pay a certain sum of money. This amount is shown as a minimum due amount. Usually, it so happens that you pay the minimum amount that is due. But this is not correct with respect to your credit score.
It should be clearly understood that you need to pay the entire amount that is due rather than paying the minimum amount that is due. If you pay only the minimum amount that is due, the amount that is left over will be shown as an amount due and it gets reflected in the CIBIL Report, thereby reducing your credit score.
12. Do Not Apply for New Cards:
It is better if you do not apply for new cards if you are in the process of increasing your CIBIL Score. The main focus should be to utilize the existing cards to a minimum extent.
13. Avoid Being Credit Hungry:
You should avoid showing a credit hungry behaviour as this will lower your credit score.
14. Avoid Being a Guarantor:
You should not be a guarantor to an individual. Because if you have become a guarantor for someone and that individual has defaulted on the loan taken by them, then you will be held responsible for their default. This will, in turn, affect your credit score in a negative manner.
15. Do Not Settle Disputes:
If there are any disputes regarding your loan, do not opt for settling them because dispute settlement leads to lowering the credit score.
16. Perseverance is important:
Increasing the credit score requires a lot of sincere and continuous efforts. It is a lengthy and time-consuming process. Therefore it is important that an individual is following the steps to increase the credit score in a dedicated way so that the results are positive.
It should always be noted that a good CIBIL Score reflects your financial discipline and portrays the spending as well as repaying habits that you have. You can always work on your credit score by adopting the ways that will help in enhancing the CIBIL Score and avoiding the ways that lower the credit score.
We, at Creditseva, have always helped individuals in gaining knowledge in increasing their credit score and maintain a good credit report. With the assistance of our tools and apps, it is easy to increase the credit score and focus on staying in the elite club which is related to those borrowers who have attained a very good credit score.
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