How To Improve Cibil Score: Know how to increase CIBIL score

If your CIBIL score is low, you may face some problems in getting a credit card. But if you want, you can improve your CIBIL score. Today we will tell you How To Improve Cibil Score (How to increase your CIBIL score)? That is, how can the CIBIL score be increased? For this information, read the information given below carefully till the end.

What is CIBIL Score (CIBIL Score Kya Hai)

CIBIL score or credit score is a three digit number which ranges between 300 to 900. This score indicates the loan eligibility of any person. Generally, if the CIBIL score or credit score is more than 750, then it is considered quite good and any company or institution approves the loan quickly. Because any institution evaluates the risk of giving loan to the applicant based on his/her CIBIL score.

Therefore, you should always pay the monthly installment of the bank or the credit card bill on time so that your CIBIL score does not deteriorate and in future you do not face any problem in applying for a new loan or credit card. If your CIBIL score is bad, then we are going to tell you further about what should be done to improve it.

How To Improve Cibil Score

If your CIBIL score is also low and you are worried about it, then we will tell you some ways by which you can easily increase your CIBIL score, so let’s start –

1. Pay the loan on time

If you want to increase your CIBIL score, then it is important that you pay your outstanding loan on time. If you do not pay the loan on time, then your CIBIL score is badly affected. By paying EMI on time, your CIBIL score always remains good, whereas if you delay in paying EMI, then you have to pay a penalty and at the same time your CIBIL score also decreases.

2. Build a good credit balance

If you have taken both secured and unsecured loans, then you should pay off the unsecured loan first because the financial company or bank giving the loan has more trust in the person taking a secured loan. Therefore, you should always maintain a balance between secured and unsecured loans so that your credit balance remains good.

3. Monitor administrative activity

If you have repaid your entire loan and have closed this loan from your side, then even after that you have to keep an eye on the administrative activity. Many times it happens that even after repaying the entire loan, your loan appears to be active, due to this also the CIBIL score continuously decreases. Therefore, after repaying the loan, make sure that your loan is not activated.

4. Do not take a joint account

You should never open a joint account nor become a guarantor for any loan, because if you become a guarantor for someone’s loan and he is unable to repay the loan, then this also affects your CIBIL score.

5. Do not keep credit bills outstanding

You should never keep credit card bills pending as this also affects the civil score a lot. The sooner the credit card bill is paid, the more likely it is to increase the credit score. You should pay the outstanding amount of your credit bill before the due date.

6. Take one loan at a time

To prevent your credit card balance from decreasing, try to take only one loan at a time. If you take many loans at once, it becomes very difficult to repay them, which affects your CIBIL score.

7. Do not overuse credit cards

The most important way to improve your credit score is to keep a check on your credit card limit. You should never spend more than 30% of your credit limit as this indicates that you have made wasteful expenditure without thinking, which leads to a lower CIBIL score.

8. Choose a longer loan repayment tenure

If you take a longer period to repay the loan then your EMI gets reduced which you can easily repay on time, this will help you in increasing your CIBIL score.