Is There A Right Time To Enhance Your Credit Score?

Good credit score entails a key to financial freedom. With scores above 750 you not only get access to easy loans and credit cards in the present, but you also become a preferred customer of bank for several add on credit deals and discounts in future. For, a good score suggests that you not only use the banks’ products but also pay back on time.

 

Thus anyone who wants to enjoy credit facilities should always pay attention to enhance credit score. Although managing credit score is not a rocket science, but it certainly requires a lot of financial discipline and planning to keep the score in upward direction. There is no defined timeline to work on your credit score. Each month, week and day, you need to be vigilant of your credit accounts and payments so as to not miss any dues ever.

If you plan to apply for a home loan in future, or an auto loan to buy a car, or for that matter, apply for a credit card or use any of the bank’s credit offering, you certainly should start working to improve the score today. Working on score months before the loan application is just the right time to enhance the rating. With good score in your kitty you would substantially save on interest rates and have shorter EMIs.

 

So let’s find out how to get a good credit score always? If you have a low score, then how to improve CIBIL rating? And what are the factors that affect your score adversely? Finding out answers to all these FAQs, would help you understand score calculations even better.

 

Step By Step Process to Enhance Credit Score

Study your credit report and access the practical situation.
It is important to study your CIBIL Credit Information Report by heart before you work on different ways to increase credit score. Knowing your report practically helps you know how much homework you need to do before applying for the next loan or credit card. When you read your report look for following:
Any kind of factual errors in your account details, personal details or payment history. If you come across a dispute, probably a correction would be enough to raise the score.

Fraudulent credit query or unidentified entry in your account. This is a first check for identity theft. Identify thefts can be financially disruptive and bleed your credit score.

Reasons for low score. These could be as trivial as late payments or skipped payment reports.

Gap between the desired score and the actual score. This would help you know how much work you need to put in, to manage the score. Knowing the width of gap you can even decide to use a professional help to manage the score.
Make a strategy to improve cibil score.

If you want to maintain a good score, pay attention to following points always.

Make timely payments. Avoid late payments on all costs. As, clear credit history is one of the most important factors to boost the score.
In order to ensure that you never miss the EMIs or bills, you can automate the payments via a bank account on a fixed date every month. All you need to ensure is enough surplus in the account to make the next month’s payment.

In case you have too many debts to pay back, you should make a budget and save as much as possible to avoid late payment. This planning will help you get enough credit for future.
Never appear credit hungry when you apply for loan. Too many credit applications too soon, damage the score and make you look in dire need of funds.
Try to maintain a right mix of secured and unsecured loans and credit facilities. Too many unsecured loans bleak your credit worthiness too. In fact applying for a secured credit card is one of the quickest methods to improve the score.
Keep track of your co-accounts as guarantor and/or joint loan applicant. If any of your joint account holders default your score would be jolted too.
Never use more than 30-40 % of credit limit. Always try to maintain a decent credit utilization ratio.
Always clear monthly credit bills on time. Never let the card balance transfer from one month to another.
Last but never the least, you need to use all these steps month on month. Keep track of your credit report twice or thrice a year and have a strict check on any of the issues that hamper your score.

How Wrong CIBIL reports can destroy your financial life

How Wrong CIBIL reports can destroy your financial life

A credit report contains detailed information of the credit you have availed. It will contain information regarding your borrowing pattern and repayment history. Financial institutions will take a look at the report before deciding whether or not to let you avail credit. Now, because these reports play a huge role in the loan application process, any kind of error in the report can ruin your chances of getting the loan application approved. It can also tarnish your image in front of the financial institutions. Hence, it is very crucial to regularly check your credit report to identify errors, if any, and look at the different ways on how to correct CIBIL report.

Errors in the credit report can cause major damage to your financial life. When you desperately need to take out a loan, inaccuracies in the credit report can ruin your chances of getting the loan you wanted to avail. Your home loan, student loan, personal loan or even credit card application can get rejected because of an error in the report. The inaccuracies can bring down your score big time.  It is thus very essential to know how to correct CIBIL report if you spot any errors, as well as how to improve CIBIL score and report. Remember, checking your report on a regular basis and getting it corrected when necessary is one of the ways on how to improve CIBIL score.

Some of the errors that can creep up in your report include incorrect current balance (such as finding the latest payment missing from the report), wrong personal details and incorrectly listed loan outstanding, among others. These errors can be corrected by raising a dispute. However, according to CIBIL, the following fields cannot be disputed – Control Number, Member Name (Unless it is an Ownership Dispute), Account Number (Unless it is an Ownership Dispute), Date Reported and Enquiry Date.

When you have spotted an error in the report, you can submit a dispute with the credit bureau. This is the first step on how to correct CIBIL report. After initiating a CIBIL dispute, you would be required to fill an online dispute form, where you need to mention the type of inaccuracy. The 9-digit control number in the credit report must be entered in the form. The credit bureau will then reach out to the respective financial institution who will state if the dispute is valid or not. If it is then the rectification will be made when the financial institution submits the correct credit information. Once the dispute is accepted and the information updated, the bureau will send the client the updated report. Any dispute can take up to a month to get resolved. It is important to note that the credit bureau does not make any changes in your report directly. The legitimacy of the dispute will be determined by the respective financial institution, which then will authorize the credit bureau to make changes.

Both your credit score and report play a big role in your financial life. Hence, it is necessary to have detailed knowledge about how to correct CIBIL report as well as how to improve CIBIL score and report. Some of the other different ways on how to improve CIBIL score and report, besides checking for inaccuracies in the report, include maintaining a healthy credit mix, making repayments on time, refraining from sending out multiple loan applications at once etc. Keep in mind that by putting into practice the different methods on how to improve CIBIL score, your credit score will not jump up instantly. It will take some time till you can get it up to at least 750. One of the most essential things you need to do after having reached your goal is maintain a good score.

The importance of maintaining a healthy report cannot be stressed enough. Get into the habit of checking your report at least twice or thrice a year to make sure the details listed on it are correct. Put into action the above mentioned measures on how to correct CIBIL report if you spot any errors. If you think that you have been a victim of identity theft, you must monitor your report more often. Knowledge about how to correct CIBIL report and how to improve CIBIL score can go a long way in making your financial journey a smooth one.