it is basically a measure of your credibility or how trustworthy you are in terms of financial institutions.
It is the score that ranges from 350 to 850 and the higher the better banks look at your civil score when you apply for loans etc. Now you might be wondering I haven’t checked or know anything about my civil score yet so why should I care. But the fact is that even if you don’t care, there are few agencies that track the records of your cibil score.
They know everything about the loans you’ve taken, the credit cards you have whether or not you have been making payments regularly, or not keeping these factors in mind they have given you a score that decides your score.
I suggest you to check your cibil score once if you have not done it yet.
So anyway if you have a low cibil score let’s say here are four simple and easy ways by which you can fix it repair it and bring it back to normal or even higher and how to improve your cibil score
1 PAY YOUR BILLS ON TIME AND IN FULL
many of us have credit cards and the habit of paying off the minimum balance every month this is a big mistake.
mistake if your credit card bill is let’s say 10,000 rupees pay off the entire ten thousand rupees that month once the bill comes to you don’t just pay the minimum.
Minimum once you pay in full this is a strong indicator to credit agencies that you are a trustworthy person if you keep continuing to do this you will see that your civil score will keep improving steadily over a period of time
2 SPEND ONLY 30% OF YOUR CREDIT CARD LIMIT.
now many of us make this mistake of fully utilizing your credit card every month for example if your credit limit on the card is rupees 10,000 then you make purchases of almost ten thousand and max out your credit card.
For example: imagine you are in high school and you were allowed rupees 500 as your pocket money by parents if you went ahead and spent the full amount on things that you actually liked will your parents have a good impression of you probably not so they might think hmm this fellow don’t know how to control his spending habits so it’s better we gave him less money next time so same thing happens with Cibil as well.
3 DO NOT APPLY FOR MULTIPLE CREDIT CARDS OR LOANS SIMULTANEOUSLY.
Many of us have a habit of rolling money like paying outstanding of one card from another card, taking another personal loan to pay off the current loan, I must say this is really a bad practice. Do not do this ever because credit agencies check every single move of yours regarding loans and credit cards.
If you do so this may create a suspicious feel that why are you in need of so much money.
Every time you check a score you get a negative score for multiple inquiries. Every time you apply for any loan or credit card you get a negative score.
So better not to apply for multiple cards, keep using your single card regularly and you will get a limit increase option in the same card.
4 CLEAN UP INACCURACIES IN YOUR CREDIT HISTORY.
So by now i guess you have an information about what your cibil score is and how it can effect your financial health.
it is quite possible that they have some wrong information or inaccurate information about you it’s quite possible like that old credit card information about me I found out later you might have something like that from the past in your name on the report and it might be negatively affecting you so what you need to do is to remove such inaccurate remarks from your profile and essentially clean it.
you first need to get your credit history this is the report those four agencies have in your name the good thing is that you can get it for free from them once a year. this will have all the financial information about you from the past few years.
Once you get it to go into the report and see if there are any inaccurate entries that you think should be removed things like old closed accounts or a wrong entry or anything of that nature you can raise a dispute with civil and have them cleared successfully.
Once you have them removed your civil score will benefit and improve.
So by now i hope you might have got the required information about how to attain your good cibil score using the mentioned tips and i am sure that many of you will use this tips to maintain your cibil score steady and high.
By this ill take your leave, do not forget to share your views about this article and anything else in the comments.