5 Simple Ways to Improve Your CIBIL Score

While getting a personal loan has become a lot easier than it used to be, your credit or CIBIL score plays a key role in deciding your eligibility. A high CIBIL score shows that you are creditworthy, which increases your chances of getting a large sum at a low interest rate. A low CIBIL score, on the other hand, may reduce your chances of getting approval on your loan. That, however, doesn’t mean that there’s nothing you can do about it. Read on as we present five ways to improve your credit score and thereby increase your chances of availing a personal loan.

The 5 Simple Steps are as Follows:

  1. Clear Your Debt
  2. Pay Your EMIs on Time
  3. Limit Your Utilization of Credit
  4. Borrow a Mix of Credit
  5. Report Discrepancies
Check Your Credit Limit

1. Clear Your Debt

Your outstanding debt may show up in your CIBIL report, and it will remain on your report until you repay them. Holding on to debt will negatively impact your credit score. One simple way to boost your credit score, therefore, is paying off your debt. If money is a constraint, you can always use an instant loan app such as KreditBee to get a much-needed infusion of cash.

2. Pay Your EMIs on Time

If you want to improve your credit score, must pay all your EMIs on time. Late payments quickly pull your CIBIL score down and show up on your report. One easy way to avoid this is by setting up an automatic transfer from your bank account to facilitate timely payments. Paying your EMIs on time will help prevent you from incurring late-payment penalties or bounce charges, and will boost your CIBIL score.

Additional Read: 4 Tips to pay your personal loan on time

3. Limit Your Utilization of Credit

When you utilize your credit too much, it indicates that you are unable to live on your income. When you use your credit cards, make sure that you do not completely exhaust your credit limit. This is just as important as paying your EMIs on time.

4. Borrow a Mix of Credit

To improve your credit score, you can borrow a mix of credit. One way to accomplish this is taking secured and unsecured loans and repaying them on time. You can also go for a prepaid cash card to further diversify the mix.

5. Report Discrepancies

It is possible that some of your payments are not updated or informed to the CIBIL. There can be similar discrepancies and if you happen to notice any, make sure that you report it to the credit rating body as soon as possible.

Wrap Up

Now that you know how to improve your credit standing, getting a personal loan should not be a problem. Use a personal loan app such as KreditBee to experience the quickest way to get a personal loan. Simply download the app, complete your profile, and leave the rest to us. If you wish to learn more about our personal loans and how to acquire personal loans in Faridabad, write to us at [email protected] or simply call +080 44 292 200.

Author image
About KreditBee
India Website
Need a personal loan? Download App
Bootstrap Example