All You Need to Know About CIBIL Score and Ways to Improve it
A CIBIL score is a numeric expression which ranges from 300 to 900. This specific score is utilised by different financial institutions to evaluate an individual’s creditworthiness. The credit score is generated from a borrower’s payment history accumulated from CIR. CIR or Credit Information Report is an individual’s credit repayment history over time.
An individual should hold a minimum CIBIL score of 750 to avail any loan. Those with a lower CIBIL score may face some inconveniences to avail any advances. However, individuals can follow a few steps to improve their overall score.
Pay your dues on time -
One of the primary methods to improve an individual’s credit score is to set a reminder to pay dues on time. Delayed payments not only subject an individual to pay a penalty fee, but it also decreases a borrower’s CIBIL score; hence, they should meet their obligations on time.
Maintain your old credit cards -
Borrowers who already possess credit cards should not cancel the same. By utilising the old credit cards and paying dues in time, an individual can improve his/her CIBIL score with ease.
Avail a personal loan -
An individual can apply for unsecured advances like a personal loan. Such advances do not require mortgaging an asset and are sanctioned quickly.
The total loan amount in case of personal loans is relatively lower than a secured loan, which makes the repayment more manageable. By repaying a personal loan diligently, an individual can suffice their financial requirements and improve their CIBIL score as well.
Additionally, a borrower should opt for a longer tenor while availing a loan. As a longer tenor ensures an affordable EMI, borrowers will be able to pay their dues quickly.
By implementing the above-stated steps, you can improve your credit score and avail credits in the future with ease.
Additional Read: Know How Your CIBIL Score is Calculated