6 Easy Ways To Increase Credit Score or CIBIL Score in No Time!
Most people aren’t conscious of a credit score. Credit score usage is not only limited to lenders but it is also useful in getting a new loan facility or increasing your existing loan limit.
It is also often used for evaluating loan applications and setting interest rates. The following tips can help you to increase the Credit Score or CIBIL Score.
How to Increase Credit Score or CIBIL Score
Check Credit Score Reports Regularly
The credit score lists your outstanding debts, EMI, past credit accounts and existing credit card balances and these details are used to evaluate your credit score.
Incorrect or incomplete information, clerical errors, fraudulent transactions, or credit application will reduce your credit score.
Reviewing a credit card report at regular intervals should be able to detect such errors or frauds. Importantly, paying bills on time can improve your credit score.
Use a Credit Card Regularly
Using credit cards to make payments is the same as taking out loans. A credit score can get affected if your credit card balances are not repaid in a timely manner. So using credit cards and ensuring timely repayments is a great way to help existing lenders increase their credit score. This is a very convenient way to establish a credit history for those who don’t have one. What is a Credit Card?
Let a Healthy Credit Mix Be Yours
The combination of your credit mixes will affect your credit score. Credit bureaus tend to offer more to such borrowers, as lenders prefer to lend with a higher share of secured loans, such as home loans and car loans.
If you have applied for a loan or credit card, the lender will request your credit report from the credit bureaus. These requests are considered tough inquiries. Applying for a loan is not okay if you already have a low credit score.
Monitor Credit Usage
The credit utilization ratio gets your credit card limit. Make sure credit usage is within the 30% -40% ratio of your total credit limit. If you frequently exceed the 30-40% level, ask your card issuer to increase your credit limit or get another credit card.
Monitor Guaranteed Loan Accounts
Both are equally responsible for any missed payments or defaults on credit accounts if they are a joint creditor’s signature, guarantee, or joint debtor. Your credit report can have a negative impact as a primary or another applicant. So, keep track of the repayments made in those accounts. Ensuring regular repayment of accounts helps to steadily increase credit score
Make Timely Dues
Last but not least pay your dues time to time which will help faster to improve Credit Score or CIBIL Score.
Also, know What is a Good CIBIL Score or Credit Score