06-Jul-2018 written by : FSI-Team
Believe it or not, a credit score plays an important role in your life when it comes to shopping for financial products. When it comes to credit score, sometimes it is hard to understand how the rating works and how do the banks determine if they can provide you a loan. When you apply for a loan, you think the only thing which matter for getting your loan sanctioned is your incomes and gains towards the loan amount you are applying for. This is absolutely not the case! A good credit report can help you get your loan sanctioned in no time.
Imagine, you have applied for a personal loan and you are confident that you will get your loan sanctioned in a day or two. But instead, you get a call from the bank with a bad news stating your loan request is rejected. You try to get some insights on what is the exact reason your loan got rejected and the bank informs you about your bad cibil score. You get your free cibil report and check your score. Now you are in a dilemma on what went wrong with your cibil score and if there is a chance to amend it, how can you? You surf the internet and try finding solution to this credit problem and find same solutions everywhere and you know the recommended processes mentioned online will take your time.
If this situation is happening with you now and you are reading this article you are at the right place. Today we will sight you on how you can improve your credit score in new ways,
We know you may think, this is not new at all but trust us, this helps. Many credit card lenders these days offer you a lot of facilities on your card and one of those is to set credit usage limit. By doing this you unconscious limit yourself by overspending your card. This way you can also limit your credit usage which will ultimately boost your cibil score.
This can be considered as one of the old ways to improve the cibil score, but it is important. By paying all your bills on time, you indicate to your future lenders that you are good with managing all your finances intact. This will not only help you get a speedy loan in the future, but also will help you improve credit score.
This might sound new to you, but this is also one of the innovative ways to improve your score. Assume, you credit limit is 1, 00,000 rupees and you have used 50,000 off your limit. If you have some funds to spare before the due date, you can make a partial payment and let’s say around 25,000 and the rest 25,000 you make the payment on the due date. This way the lender will send information to the bureau of multiple transactions on your account. Because the information is positive you can see good spike on your report.
This is one of the best ways to establish your cibil score. Even if you do not have a credit score, you can apply for a consumer durable loan from any digital shop or online shop. It is at least better than applying for a credit card and getting rejected for reason being no credit score. The process to get a consumer durable loan is quite easy and fast. At the same time these type of loans help you contribute a lot to your report. Just make sure to make all your payments on time.
There are a lot of hidden and new ways, which can lead to a better credit score but the ground rules for all those strategy remains the same. Ground rules like, making payments on time, less credit lines, etc can help you achieve your credit target.