Have you ever been declined for a loan or a credit card? Do the lending institutions take longer time to decide on your loan applications? Have you been asked for a higher rate of interest on a loan? If yes, then you need to improve your CIBIL score.
Let’s understand what is this credit score, popularly known as CIBIL score and how can one enhance it?
Credit Score – the three digit financial indicator
A credit score is an indication of one’s credit footprint, because it captures complete details (historic and current) pertaining to credit facilities taken by an individual. The score is based on various factors and the underwriter uses this to while assessing a person’s loan request. Not only that, the credit score may also be a deciding factor for approval or rejection of a loan request.
An improved CIBIL score is always an indication of a good credit health. If the score is not acceptable by banks and institutions, there are ways to enhance and improve a bad credit score.
Ways to Improving credit score
- One must be watchful about credit card expenditures; monitor its usage and make timely payments, without delays.
- Keep a strict monitoring on the EMI amount being available in the account before the due date. Any delay will put a negative remark on credit reports.
- Using loans wisely, will help you to build a good credit record and also improve CIBIL scores significantly.
- Endeavour to maintain a clean record on your credit behavior to avoid suspicions from a prospective lender.
- Maintain a good mix of credit that shall help you in improving the credit score
- Do not make unnecessary inquiries for credit facilities
A good cibil score shall help in getting loans as and when it is required.