Easy Steps to Improve Your Credit Score: Your credit score plays a crucial role in your financial life, which impacts your ability to apply for loans and credit cards, and even impacts your housing or job prospects. If you’ve found yourself with a less-than-stellar credit score, don’t worry – there are simple steps you can take to turn things around. In this article, we will share with you useful and easy tips to improve your CIBIL score and after that, you can apply for a loan and other financial purposes to any bank or financial company without any hesitation.
Easy Steps to Improve Your Credit Score/CIBIL Score
CIBIL score is a three-digit numeric Data of your credit history, rating and report. Its range starts from 300 and goes till 900. If your CIBIL score is closer to 900 or more than 750 then it is considered a good CIBIL score. But a lower rating of cibil score is considered a bad CIBIL score or if your credit score is less than 650 then you have to face difficulties while applying for a personal loan. Lenders use your credit history to assess your creditworthiness, or your ability to repay a loan.
A good credit score will make it easier to qualify for loans and credit cards, and you will get offers of lower interest rates. A bad credit score can make it difficult to qualify for loans and credit cards, and you may be offered higher interest rates or denied credit altogether. You can follow the following simple tricks which will help you to improve CIBIL score instantly.
Pay Your Bills on Time
Paying bill timly is one of the most significant factors which influence your credit score. You have to pay all your bills on time, including credit cards, repayment of loans, and utility bills. You can set up reminders in mobile or enable automatic repayment to avoid missing due dates. Late payments can have a significant negative impact on your score.
Reduce Credit Card Balances
Credit card companies provides additional balance on credit cards which can be used at emergency time. But you should not use more than 30% of credit limit if you do not want to reduce your credit score. It is also important to pay timely to the company to balance your credit amount otherwise bank will decrease your credit score and you will not able to apply for other financial services including personal loan.
Manage your all credit cards
Individuals can apply as many credit cards according to theri need but if you are not capable to maintain or manage these credit cards then you should not apply for two or three credit cards. Otherwise you have to maintain all these cards. In case you do not maintain your old credit cards then company will reduce your score by analysing the history of old credit card and you can face difficulty on asking personal loan.
Reduce hard enquiry
Loan providers apply to check the history and the credit score of the person who want to get loan so they apply for credit card enquiry. Once your employer receives Credit Card enquiry from other company then provide your information to other, but if many loan providers apply for credit card enquiry, Bank can list your credit card in the list of the applicants who apply for personal loan from many sources at one time. So this practice will reduce the credit score of the Person. So you should not apply for credit card enquiry at every time without need.
Repay the loan
If you are for already involved in any loan scheme and are not able to pay the loan timely, so your credit score will decrease. So before applying for any type of loan, you should check your income sources, if you are capable to repay the loan amount then you can apply for personal loan otherwise you should avoid to borrow the loan amount from bank or finance company but you can use your Savings and ask amount from your relatives.