07-Dec-2015 written by : FSI-Team

Planning to take a loan? Or wondering why you were not given a credit card, you applied for? Perhaps, in your “credit score” lies your answer. Here is a list of some FAQs on CIBIL Score.

1. Does my score really matter? :

The answer is as simple as Yes! It certainly matters. Even if you are not planning to take a home or a car or a credit card, make sure your score is in a decent bandwidth. It will serve beneficial in future. In case you have not taken much care of your score or have been indifferent about it, then you may find yourself in a soup whenever you need a loan. One must remember one important thing, credit is not built overnight. It takes time, patience and effort of the potential borrower.

2. How to boost your CIBIL score? :

Your CIBIL Score or Credit Score is the outcome of your timely payments to bills, existing loan EMIs, outstanding credit limits and for how long have you been using credit. Make sure that your payments are made on time which is before or on the due date. Any late payments or penalties imposed will lead to a negative impact to your score. Although there are quite a few ways to enhance credit score but being on time has the maximum weightage in the calculation of your score. The credit score is the result of how well you have used your credit in the past. Building the history of your credit may take some time but it will have long term benefits since it will determine which loans or credit cards you will be eligible for and the rate of interest you will pay for it.

3. What are the ways to improve my credit score fast? :

If you need of a loan real quick and can’t get one approved due to a poor credit score, then you can improve your chances rapidly by:

  • Paying all your pending bills on time
  • Try to make small charges on your credit card that you are able to pay in full every month
  • Make sure that you are not maxing out on all your credit limits. Ideally using only 30% to 40% of your credit limit has a positive impact on your score.
  • Do not go hunting for too much credit. Too many credit cards or loans can have a negative impact on your score.
  • Don’t rush to cancel your credit cards because it will lead to a drop in your available credit limit and throw a poor light on your usage of credit. It is important to strike a balance between too many credit cards and too little credit usage.

Changes will not come instantaneously. Being a patient and responsible credit user will certainly set you on the right path.

4.How to Increase Your CIBIL Rating? :

Honestly, all the ways by which you can increase your rating have been mentioned above. Try to shorten the fraction of your unsecured debt, like personal loan, from your debt portfolio. It throws a negative light on your score. Do not be credit hungry by taking loans from several lenders. Try and make credit card payments in full instead of minimum payments. Adopt a policy of credit discipline. All this will help you to increase your credit points.

5. How to correct CIBIL report? :

The option of disputing an error in your credit report is always open. Your CIBIL report is monthly updated through data obtained by banks and other financial institutions. There is always scope for human error. In an event of any such mistake found by you, then:

  • Make a list of all the errors found in your credit report.
  • Log on to CIBIL Website
  • Open CIBIL Online Dispute Resolution Form
  • Fill up this form and send to CIBIL
  • CIBIL, after receipt of the complete information in the form, contacts the lender to verify the details raised in the dispute.
  • CIBIL rectifies your credit report. It will also inform you of the update.

6. Can CIBIL defaulters avail any loan? :

Does your name appear on the defaulters list? If it is an error, read point #5 to dispute it. But if it is not an error, then doing what is mentioned below will help:

  • If you have a higher salary now, show your latest salary records or other documents to prove your ability to repay your loans.
  • Take a loan jointly with a friend or family member, who has a better credit rating. Make sure this loan is repaid in time to build your credit henceforth.
  • Take a secured loan that is a loan in lieu of your fixed deposits, gold or other assets.
  • Take a loan of small amounts from institutions other than banks and repay them on time. This will help you enhance your credit score over time. Once that happens then you will be eligible for applying for loans with institutions of your choice.

Whatever were your reasons in the past to let yourself be a defaulter, try and make amends to them now. Observing credit discipline, being a responsible spender, making timely payments and monitoring your score regularly are basically the “gurumantras” for maintaining good credit health. We hope this article answers your questions. Good Luck!



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