Your CIBIL rating is an important part of your credit history based on your CIBIL report. Your CIBIL score of less than 750 might be a burden for people in urgent need of a personal loan. However, this is only a number that can be improved.
Top 5 ways to boost your cibil score fast and easily. It will help to get the loan quickly.
1. Maintain a Proper Financial Balance
It is usually a good idea to have a good balance of unsecured loans, such as credit cards and personal loans, and secured loans, such as a vehicle loan or a home loan. Individuals having a larger number of secured loans are favored by lenders, and credit bureaus give them a favorable credit rating. If you have more unsecured loans than secured loans, attempt prepaying your unsecured debts to maintain a healthy balance.
2. Loans and credit cards should not be settled
People frequently choose to pay with a credit card or debit. This implies that they contact the bank and request a deal that would allow them to settle the debt for a lesser sum than the real amount owed. While banks will sometimes grant such requests, the settlement will appear on the credit record and will have a negative impact on the score or a bank’s willingness to extend new credit.
3. Avoid taking out multiple loans at once
To protect your credit score from falling too low, repay your present debt before taking out another. Taking out many loans at once indicates that you may not have enough money to repay them all. It is preferable to take out one loan at a time and properly repay it in order to improve your credit score.
4. If you are rejected credit, don’t apply again
Whenever you apply for a loan or a credit card and your application is denied, the information will be entered into your credit report. If you apply to another bank right away, they will notice your poor score and previous rejection and may reject your application. In such circumstances, it is recommended not to reapply and instead wait for the score to improve.
5. Check your credit history on a regular basis
Check your CIBIL score and report on a regular basis for irregularities. CIBIL may make mistakes while updating your records, including adding inaccurate information against your report and entering facts late. Sometimes a debt you repaid is not updated on your credit record, which might have a negative influence on you. If you detect such problems, have them corrected as soon as possible.
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