Credit Score is one of the important factors that can affect your overall finances both positively and negatively. Different credit bureaus keep track of your repayment behavior and provide a score based on this. CIBIL is one of the most popular credit bureaus in India.But here, we want to focus on your attention to the CIBIL Score improvement. Several people ask this question about how to improve CIBIL Score in an easy way?
When a person wants to know the methods to improve your CIBIL score, it simply means that he or she has a pretty low score. A low score indicates that an individual has irresponsible repayment behavior which resulted in a low score. The crucial part to improve your score is to correct your bad habits related to repayment, and form a few good ones. In this article, we will be telling you all the methods that will give the answer to your question of How to Improve CIBIL Score. If you are struggling with a low score, you can apply these methods. Keep reading to know more! Let's Understand a Few Methods to Improve your CIBIL Score! As we said earlier, improving your CIBIL score is nothing but correcting your bad repayment habits, and keep doing them responsibly. When you do them for a long time, your score will improve automatically. We are showing some of the methods below that you can check. Never Miss your Bill Payment! The first and foremost thing you need to remember is to never miss your bill payment. These payments can be your credit card bills or Loan EMIs. Always try to pay them before the specific due date. When you form this habit of timely repayment, you will only increase your score. Timey Bill Payments is one of the prominent factors that affect your score. Also, one of the crucial things to pay on time is to always spend according to your repayment capacity. Don't make a Habit of Paying the Minimum Due Amount Some individuals believe that they can get on with their financial life by paying only a minimum due amount on their credit card. If you don't know what this minimum amount is, let us tell you that 5% of your overall credit card bill is known as the Minimum Due Amount. But here's a catch when you pay only the minimum due amount. The interest and other charges will be added on to the remaining amount. If you keep paying only the minimum due, it will keep piling up, and soon you will be in a debt trap. So, when you are asking answers for how to improve CIBIL Score, this is one of those things you should avoid. Use your Credit Card Limit Wisely It is advised to use only 30%-40% of your overall credit limit to improve your credit score. Suppose you have an overall credit limit of INR 1 lakh, you should try to spend only INR 30,000 to 40,000 in a month. Individuals who spend more of their credit limit are usually seen as credit hungry borrowers in the eyes of lenders. Also, when you spend less of your overall limit, you would be able to pay your bills on time. Check your CIBIL Report Regularly One of the efficient methods to improve your CIBIL score is to check your report regularly. Some people also seek answers to the question of How to Check CIBIL Score of theirs. To do the same, an individual needs to follow a few simple steps and he or she can know his CIBIL Report from which the score can be known. Checking your report regularly helps you with finding any irregularities if any. Correcting them can improve your CIBIL score score significantly.
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Anika Sharma
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