17-Dec-2015 written by : FSI-Team
Do you believe that your CIBIL score is not up to par? Are you looking for options to better your existing score? Read on to find out more. With CIBIL being the oldest credit bureau in the country, a credit score has become synonymous with the bureau. Hence, when someone mentions a CIBIL score, they could be referring to a credit score.
A score is numerically represented between 300 and 900, and a higher score increases the possibility of your loan being approved at the best interest rates, should you apply for one. Credit scores take into account years of past repayment history, hence if your score is low, while there is no quick-fix solution to bring up the numbers, given time and financial discipline it is very much possible. Let us look at some ways to increase your score.
Always make payments on time – This is, needless to say, very important as any late payment or payment default will have an adverse impact on your score. People tend to skip or delay payments owing to sheer procrastination or because they forgot. If that is the case, consider setting up payment reminders, or opting for facilities such as ECS or standing instructions from your bank account. This will ensure that all outstanding is settled before the due date.
Be judicious with new accounts – Applying for a credit card only because the advertised perks are too tempting to resist? If the answer to the question is yes, you may want to take a quick step back and pause to think! Remember, adding an indiscriminate number of new loans or cards can pull down your score, as you would appear to be deep in debt and needing additional finance to stay afloat.
Retain older debts – Still have that credit card you’ve been using for the past few years? If your payments are regular, it would be wise to keep the account live. This gives a prospective lender a record to go by, both regarding your intention and ability to repay loans.
Credit counselling – If in spite of your best efforts you are not able to better your score, you could consider opting for counselling. Here, trained personnel would ably guide you to repair and maintain your score over a period of time.
Unlike an appliance that can be mended immediately once it breaks, your credit score takes time and effort to build up. Remember though that it is an achievable goal, once you set your mind to it. One must do credit check on an ongoing basis to keep a track on the credit score.
You should always keep track of your cibil score. You will have to pay a specific sum of money to get your cibil report as a free cibil score is not available