Are you unable to secure a loan because of a low CIBIL score? In India, your CIBIL score is a crucial factor in determining creditworthiness. However, with a few strategic steps, you can work towards improving your score.
1. Maintain Good Credit Practices
Consistently using and repaying credit on time demonstrates reliability and responsibility. This significantly boosts your credit score.
2. Avoid Small Loans Frequently
Taking multiple small loans often signals financial instability to banks, potentially lowering your score.
3. Increase Your Credit Limit
Requesting a higher limit on your credit card while maintaining the same spending habits helps reduce the credit utilization ratio, which positively impacts your score.
4. Keep Credit Utilization Ratio Low
It is recommended to keep your credit usage below 30% of your total available credit limit for better credit health.
5. Make Timely Loan Repayments
Timely payments of credit card bills and loan EMIs are essential to maintaining a good score.
6. Regularly Monitor Your Credit Card
Check your credit card statements and credit reports frequently to identify any discrepancies or unauthorized transactions. This helps in taking prompt corrective actions.
7. Minimize New Credit Applications
Every credit inquiry slightly lowers your score. Hence, limiting new credit applications is vital for maintaining stability.
8. Ensure Consistent Repayments
Consistently repaying loans and credit dues on time has a significant positive impact on your credit score.
9. Opt for Longer Loan Tenures
Extending the loan tenure reduces the monthly repayment burden, making it easier to adhere to repayment schedules. This, in turn, helps maintain a positive credit history.
How Long Does It Take to Improve a CIBIL Score?
Improving a credit score typically takes anywhere between 4 to 12 months, depending on factors such as past repayment history and consistent efforts towards timely repayments. Persistent adherence to good credit practices is key to improving and maintaining a healthy credit score.
ക്രെഡിറ്റ് സ്കോർ മെച്ചപ്പെടുത്താൻ സാധാരണയായി 4 മുതൽ 12 മാസം വരെ എടുക്കും. മുൻകാല തിരിച്ചടവുകളുടെ ചരിത്രം, തിരിച്ചടവുകളുടെ സ്ഥിരത എല്ലാം അനുസരിച്ച് ഈ സമയം വ്യത്യാസപ്പെടാം.
