Financial institutions check the credit score to gauge the reliability and creditworthiness of the loan applicant. A high CIBIL score leads to easy loan sanctions at lower interest rates.
Why CIBIL Score is Important?
Here is How You Can Improve your CIBIL Score Easily!
Pay your credit card and utility bills on time. Late payments not only impact your CIBIL score but also lead to penalties.
TIP #1
Use your credit card prudently. It’s advisable to have a limited number of credit cards and use less than 30% of their credit limit.
TIP #2
Consider increasing your credit limit if you have more expenses. It will instantly lower your credit utilization ratio and improve your score.
TIP #3
Avoid taking too many loans at a time. Repay one and then take another.
TIP #4
Keep a check on your credit report for any errors. Get them rectified and updated to improve your score.
TIP #5
Build a good credit score by taking out a combination of long-term and short-term secured and unsecured loans.
TIP #6
Monitor the payments of your joint and guaranteed loans as they affect your credit score.
TIP #7
Follow These Tips and Improve your Credit Score Over Time