The credit score summarizes the overall credit history. It would help if you had an excellent score to get a loan with good offers. A credit score helps the lender understand your payment history and how timely you make the payments. CIBIL score ranges between 300 and 900, but a good score is 750 or above. You can easily improve your credit score by taking conscious measures. Here are some tips that you can follow to improve your CIBIL score:
Tips to improve your CIBIL score:
Set reminders for payments and make sure it happens timely:
If you want to improve your credit score, you can set reminders for your payments, which will help you make timely payments. You can do a CIBIL score check online and understand if you need to make these changes. Making your payments on time will help in improving your score.
Customize your credit limit:
Another thing you need to do is limit your credit limit, as it will have a significant impact on your credit score. If you restrict your credit usage, then it will help in improving your score. You can lower the limit to tackle your credit history, which will also help you get better offers from the lender.
Ensure to maintain the older credit cards:
If you have any old credit cards, make sure to maintain your bill on time because it will build a solid credit history for you, which will help you get a better credit score in the future.
Opt for a longer tenure when you take the loan:
When you are taking up a loan, make sure to choose a longer tenure for the EMI payments because that will help you improve your credit score. It will avoid any delays in the payment, which will further benefit your score.
Make sure not to take too much debt at one time:
The number of loans that you take in a fixed period of time should be as minimal as possible. Make sure to repay one loan and then take another so you do not spoil your credit score. Taking more than one loan at a time will show that you need more funds, further spoiling your credit score.
Check your CIBIL report for mistakes and rectify them:
Sometimes things could be improved in the CIBIL, so make sure to check once to rectify the incorrect information that is recorded in your report. The incorrect information can bring down the score so you will have to check your CIBIL from time to time to correct the errors.
Create a credit history by choosing different types of credit:
You must have a loan in history to have a credit history which will make your CIBIL score low by default. So make sure to borrow healthy credit as unsecured and secured loans, to build a strong credit score.
You can do a CIBIL score check regularly to change any errors so that it helps in improving your score. You can change these habits in your everyday life, which will help you get better offers, the interest rate on the loan amount and a higher loan amount. You can choose to apply for a loan whenever you want.