Denied bank loan due to poor CIBIL Credit Score? Here are five sure shot ways to improve it
How to improve CIBIL credit score: Denied a bank loan because your CIBIL score is low? Wondering what to do to improve the credit score? Well, there is no need to panic if the bank has denied you a loan on the basis of your poor CIBIL credit score. There are ways through which you can improve your CIBIL score over a period of time, provided you maintain financial discipline. CIBIL score is basically one of the first checks that a bank makes while evaluating your loan application. Banks grant loans in around 90% of cases where the CIBIL score on a loan applicant is above 750. Here are some of the ways in which you can improve your CIBIL score:
How to improve CIBIL credit score: Clear bills on time
How to improve CIBIL Score: You should never keep a credit card bill or bank loan pending. Paying the outstanding debt in time has a positive impact on improving the credit score. Delaying payment of borrowed money not only attracts penalty from lenders but also negatively affects the credit score. Image: www.cibil.com
How to improve CIBIL Score: Maintain older credit cards
How to improve CIBIL Score: You should maintain older credit cards to lengthen your credit history. You should continue to maintain old cards as long as you can pay the bills. A lengthy credit history helps improve the credit score in the long run. Image: Reuters
How to improve CIBIL Score: Maintain balance
How to improve CIBIL Score: You should not exhaust the upper credit limit of your credit card regularly. This gives the message that you are not able to manage your finances well. A person's credit score is significantly impacted by her/his credit utilisation. The more restraint you exercise in using credit money, the better your credit score becomes. In case, your expenses are more, you should approach your credit card provider and customize the upper limit. Image: Reuters
How to improve CIBIL Score: Use a credit card wisely
How to improve CIBIL Score: You should minimise the use of credit cards online or at malls so that your EMIs never get more than 50% of your salary. This helps in managing the loan well and also improve the credit score. Image: Reuters
How to improve credit score: Automate utility bill payments
How to improve credit score: You should automate utility bill payments like phone bill, electricity bill, broadband bill, DTH bills etc. Missing paying utility bills on time can affect your credit score over a period of time. Image: Reuters