When you're looking to get an instant loan online, your CIBIL score plays a significant role. It can be a decisive factor when it comes to lenders rejecting or approving your loan application. Although you can manage to get approval on loans such as personal loans even with a low CIBIL score, by and large, your chances are best if you have a solid CIBIL score. Having a good CIBIL score helps you get instant loans online and other financial institutions at low interest rates. Here are four useful tips to boost your CIBIL score.
1. Clear All Existing Debt
If you have any outstanding debt on your CIBIL report, this will hurt your CIBIL credit score until you repay it. It is essential to clear your outstanding debts to enhance your CIBIL. Another way to boost up your CIBIL is to make prepayments and foreclose your loan accounts. Making responsible use of a credit card to do so also helps improve your credit report.
2. Pay Your EMIs on Time
Making timely EMI payments not only improves your CIBIL score, but it also saves you from paying extra in terms of interests and fines. Your CIBIL score includes delayed EMI details. If you find it hard to remember your EMI payment dates, set up automatic funds transfer from your bank account. All you have to do is maintain enough funds in your account to allow the transfer to occur on time. Doing so will prevent any failed transactions and also enhance your CIBIL score.
3. Report Any Inaccuracies in Your CIBIL Report
There is a possibility that your credit report may have some errors or discrepancies. If your creditors have not informed CIBIL about any of your latest payments, your CIBIL score may be lower than it should be. This is why you need to regularly check your credit report and get any errors rectified in time to enhance your credit rating.
4. Utilize a Mix of Credit Types
If you don’t take out a loan at all, you will not have a credit score, and if you borrow only one type of credit, you will not be able to give it a noticeable boost. It is advisable that you borrow a mix of credit such as secured and unsecured loans and then repay them diligently.
End Note
With a good CIBIL score, it is easy to get an instant loan online. If you are looking for an instant money loan at pocket-friendly rates, KreditBee can help. Just Download our online loan app to apply for instant loan approval. You can also email us at [email protected].
AUTHOR
KreditBee As a market leader in the Fintech industry, we strive to bring you the best information to help you manage finances better. These blogs aim to make complicated monetary matters a whole lot simpler.